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 Infrastructure Fund
ICICI Prudential Infrastructure Fund
Investment objective
To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity-related securities of the companies belonging to the infrastructure theme.
However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved
Investment process
The scheme seeks to optimize the risk-adjusted return by a mix of top-down macro and bottom-up micro research to pick up stocks providing long-term potential.
The fund manager would adopt a counter-cyclical approach to investing by remaining underweight in those sectors to which the larger market holds an elevated exposure.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 61% and sectorally major exposure is to construction which accounts for almost 19% of the portfolio. The top 5 sectors hold nearly 60% of the portfolio.
Source: ICICI Pru AMC
Top 5 Holdings for ICICI Prudential Infrastructure Fund
| Name | Sector | Weightage % |
| NTPC Ltd. | Energy Conglomerate | 9.22 |
| Larsen & Toubro Ltd. | Indian Conglomerate | 8.74 |
| Bharti Airtel Ltd. | Telecom Services | 6.78 |
| Oil & Natural Gas Corporation Ltd. | Indian oil & Gas Company | 5.57 |
| HDFC Bank Ltd. | Bank | 5.21 |
Source: ICICI Pru AMC
Performance over 17 years for ICICI Prudential Infrastructure Fund
If you had invested Rs. 10,000 lakhs at the inception of the fund, it would be now valued at Rs. 1 lakh.
Source: Morningstar
The fund has given consistent returns and has outperformed the benchmark over the period of 17 years by generating a CAGR (Compounded Annual Growth Rate) of 14.24%.
Fund manager
Ihab Dalwai: Mr. Dalwai is a Chartered Accountant. He has been associated with ICICI Prudential AMC since April 2011.
Who should invest?
Investors looking for
- Long-term wealth creation.
- An open-ended equity scheme aims for growth by primarily investing in companies belonging to infrastructure and allied sectors.
Why invest?
- ICICI is a renowned name in the finance industry with a proven track record
- Diversified exposure across market cap thereby offers less concentration risk in terms of market capitalization.
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 ICICI Prudential Infrastructure Fund has delivered consistent returns over 17 years with a proven track record and has delivered a 14.24% CAGR consistently.
Thus, suitable for investors who want sectoral exposure in their portfolio with diversification across market caps to optimize the overall portfolio volatility.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
