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. ICICI offers products across asset classes.
ICICI Prudential India Opportunities Fund
Investment Objective
The scheme’s primary objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances.
Investment Process
- Concentrated portfolio: The scheme would take concentrated exposure to high-conviction stocks.
- Market cap and sector Agnostic: The scheme has the flexibility to invest across market caps. Also, the scheme may take aggressive sectoral positions.
- Bottom-up Approach: The investing style is a bottom-up stock picking style because the core of its investment strategy is identifying companies in special situations requiring rigorous 360-degree stock research.
Portfolio Composition
The fund had invested more than 66.49% of the funds in large-cap companies, 28.94% in mid-cap companies, and the remaining 4.57% in small-cap companies.
Also, the fund is diversified across various sectors such as Pharma & Biotechnology, Automobiles, Banks, Telecom-Services, Finance, etc. The top five sectors hold approximately half of the portfolio.
Source: ICICI Pru AMC, Value Research
Top 5 Holdings
| Name | Sector | Weightage % |
| Oil and Natural Gas Corporation Ltd. | Oil | 9.03 |
| Sun Pharmaceutical Industries Ltd. | Pharma and Biotech | 7.76 |
| Bharti Airtel Ltd. | Telecom Services | 6.76 |
| NTPC Ltd. | Energy | 6.40 |
| Infosys Ltd. | Information Technology | 5.40 |
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 22,240.
Inception Date:15th January 2019.
Source: icicipruamc.com
The fund has performed consistently and has generated an annualized return of 19.64% since inception. The fund has outperformed both benchmarks consistently.
Fund Manager
Mr. Sankaran Naren and Mr. Roshan Chutkey ably manage the fund. Mr. Sankaran Naren has over 31 years of experience, and Mr. Roshan Chutkey has over 14 years of experience.
Who Should Invest?
The scheme is suitable for investors with an appetite for volatility and who would like to benefit from taking concentrated stock bets.
Investors looking to benefit from investment opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, or other similar instances face time to time may consider investing in the scheme.
Why Invest in ICICI Prudential India Opportunities Fund?
- Special situations are unique situations that companies may face from time to time.
- These situations present an investment opportunity to a fund manager who can foresee and interpret the implications of that opportunity.
- ICICI Prudential India Opportunities Fund has performed consistently following this investment strategy.
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 companies currently undergoing special situations and provides a higher return potential.
This allows investors to generate high returns over the long term by taking aggressive risks. Also, the fund has consistently outperformed its benchmark.
Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk through exposure to the banking and financial sector can consider this fund.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
