ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.
Let us talk about the flagship product – ICICI Prudential Focused Equity Fund
ICICI Prudential Focused Equity Fund
Investment objective
To generate capital appreciation through investments in equity & equity-related instrument securities of up to 30 companies across market capitalization i.e. focus on multi-cap.
Investment process
The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The Scheme will aim to hold optimum exposure to large and mid-cap stocks depending on the fund manager’s view on market valuations.
The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector-agnostic and will maintain an overweight stance on select high-conviction themes/sectors that are expected to outperform in the current economic cycle.
The scheme would use a combination of bottom-up research for stock selection. follows a bottom-up approach for identifying stocks that have robust business financials, above-average profitability, and sustained competitive advantages.
While the large-cap stocks represent established enterprises selected from the Top 100 stocks by market capitalization, the mid- and small-caps represent business entities with higher growth potential.
The allocation will be decided on a tactical basis rather than any predetermined ratio.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 82% and sectorally major exposure is to financial services that account for over 31% of the portfolio. The top 5 sectors hold more than 69% of the portfolio.
Source: Value Research
Top 5 holdings
| Name | Sector | Weightage % |
| ICICI Bank | Financial | 8.58 |
| HDFC Bank | Financial | 5.77 |
| Sun Pharmaceutical | Healthcare | 5.25 |
| State Bank of India | Financial | 5.10 |
| Axis Bank | Financial | 4.77 |
Source: Value Research
Performance over 13 years
If you had invested 10 lakhs at the inception of the fund, it would be now valued at Rs 43.19 lakhs.
Source: Moneycontrol
The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 13.13%.
Fund Manager
Sankaran Naren
He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Refco Sify Securities India Pvt Ltd., HDFC Securities Ltd., and Yoha Securities.
Vaibhav Dusad
He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Morgan Stanley, HSBC Global Banking and Markets, CRISIL, Zinnov Management Consulting, and Citi Bank Singapore.
Who should invest?
Investors looking to
- Hold a concentrated portfolio of around 30 quality stocks
- Build core equity portfolio for long-term wealth creation with steady growth
Why invest?
- ICICI is a renowned name in the finance industry with a proven track record
- Strong stock selection approach with a bottom-up approach
Horizon
- One should look at investing for a minimum of 5 years or more
- A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility.
Conclusion
The fund has delivered consistent returns over 13 years with a proven track record and has delivered 13.13% CAGR consistently.
Thus, suitable for investors who want a focused portfolio of quality stocks along with market leaders.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
