ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The AMF offers products across asset classes.
ICICI Prudential Dividend Yield Equity Fund
Investment Objective
The fund’s investment objective is to provide medium to long-term capital gains and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related dividend-yielding company instruments.
Investment Process
At least 65% of the portfolio would be invested in dividend-yielding stocks. While the criterion of dividend yield would be used to identify the investment universe from which the portfolio will be constructed, within this universe, there will be a strong focus on selecting companies that have good corporate governance, strong fundamentals and growth prospects, good track record and consistency of dividend payments and low stock volatility.
Portfolio Composition
The fund primarily invests in equity and equity-related instruments of the companies with 88.51% allocation to equity as on 30th April 2023.
The fund had the highest exposure to financial sector companies with the top five sectors amounting to more than 60% of the portfolio.
Source: Value Research
Top 5 Holdings for ICICI Prudential Dividend Yield Equity Fund
| Name | Sector | Weightage % |
| ICICI Bank Ltd | Financial Services | 7.17 |
| NTPC Ltd | Power | 6.57 |
| Sun Pharmaceuticals | Pharmaceuticals | 6.15 |
| Infosys Ltd. | Information Technology | 5.18 |
| HDFC Bank Ltd | Financial Services | 4.58 |
Source: Value Research
Performance
If you had invested 10,000 at the fund’s inception, it would now be valued at more than Rs 29,170.
Inception Date:16th May 2014.
Source: ICICI Prudential MF
The fund has given consistent returns and has outperformed the benchmark over the years by generating a CAGR (Compounded Annual Growth Rate) of 12.81%.
ICICI Prudential India Opportunity Fund
Fund Manager
- Mittul Kalawadia – As a fund manager, Mittul currently manages multiple funds at ICICI Prudential AMC. Before being a fund manager, he was a research analyst for multiple vital sectors. He started his career with ICICI Prudential AMC and has garnered an overall work experience of 11 years. His core competency lies in portfolio management and security analysis. By qualification, he is a Chartered Accountant.
Who should invest in ICICI Prudential Dividend Yield Equity Fund?
The scheme is suitable for:
- Investors who seek to invest in dividend-yielding stocks along with potential capital appreciation.
- Investors who wish to invest for a long period (five years or more).
Why invest in ICICI Prudential Dividend Yield Equity Fund?
- High dividend yield stocks are more likely to help in limiting downside risk than other stocks in falling equity markets. On the other hand, these stocks show good possibilities of capital appreciation in reviving the market.
- Investors willing to invest across all market caps can consider this scheme for investing.
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
Dividend Yield Funds provide the opportunity for capital growth as well as limit the downside risk in case of a bear market, as the companies in which the funds are invested are considered to be stable since they can pay good dividends.
ICICI Prudential Dividend Yield Equity Fund has outperformed the benchmark consistently, and hence investors can consider this to create wealth for the long term.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only
