ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 lakh crore, the AMC is among the most trusted names in the mutual fund space.
It offers products across asset classes. Let us talk about the flagship product – ICICI Prudential Midcap Fund.
ICICI Prudential Midcap Fund
Investment Objective
The scheme’s primary objective is to seek to generate capital appreciation by actively investing in diversified mid-cap stocks.
Investment Process
- Diversification: The scheme aims at maintaining a well-diversified portfolio with the flexibility to invest across sectors.
- Opportunistic Investment: The scheme shall follow a bottom-up approach in identifying midcap companies with proven products or services and above-average earnings growth. Midcap companies can deliver capital appreciation due to faster earnings growth.
Portfolio Composition
As per its investment objective, the equity exposure is majorly in mid-cap stocks at around 81%, and large and small cap had exposure of roughly 15% and 4%, respectively.
The fund is well diversified across various sectors such as Auto Components, Cement & Cement Products, Industrial Products, Ferrous Metals, Realty, etc. The top 5 sectors hold nearly 44% of the portfolio.
Source: ICICI Pru AMC
Top 5 Holdings for ICICI Prudential Midcap Fund
| Name | Sector | Weightage % |
| Hindustan Petroleum Corporation Ltd. | Petroleum Products | 4.52 |
| Balkrishna Industries Ltd. | Auto Components | 4.00 |
| Jindal Steel & Power Ltd. | Ferrous Metals | 3.26 |
| Lupin Ltd. | Pharma and Biotech | 3.01 |
| Minda Industries Ltd. | Auto Components | 3.00 |
Source: ICICI Pru AMC
Performance Since Inception
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 181,040.
Date – 28th October 2004.
Source: icicipruamc.com
Since its inception, the fund has given consistent returns by generating a CAGR (Compounded Annual Growth Rate) of 16.65%.
Fund Manager
The fund is ably managed by Mr. Lalit Kumar, who has 14 years of experience and manages seven funds.
Who Should Invest?
The scheme is suitable for investors who wish to invest in companies in the midcap space that are likely to transform into tomorrow’s market leaders over a long period of time.
Why Invest?
- The scheme offers diversification to investors looking to invest across various sectors.
- The scheme provides access to well-researched mid-cap companies with a higher return potential and could grow to become tomorrow’s market leaders in their respective segments.
Ideal Time Horizon
- One should look at investing for a minimum of five years or more.
- Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.
Conclusion
The scheme provides access to well-researched mid-cap companies with a higher return potential and could grow to become tomorrow’s market leaders in their respective segments.
However, the fund has underperformed its benchmark. Hence, investors need to remain invested long-term to witness alpha generation.
