ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.
Let us talk about the flagship product – ICICI Prudential Large & Mid Cap Fund.
About ICICI Prudential Large & Mid Cap Fund
Investment objective
To generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities of large-cap and mid-cap companies.
However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Investment process
The Scheme follows a blend of top-down and bottom-up approaches to in-stock selection. The focus of the top-down approach is alpha generation through active sectoral rotation.
While a bottom-up seeks to identify companies with reasonable profitability and scalability supported by sustainable competitive advantages.
Portfolio composition
The equity exposure is majorly in large-cap stocks at 78% and major sectoral exposure is to Banks and IT-Software. The top 5 sectors hold nearly 54% of the portfolio.
Source: ICICI Pru
Top 5 holdings
| Name | Sector | Weightage % |
| HDFC Bank Ltd. | Bank | 7.84 |
| Bharti Airtel Ltd. | Telecom Services | 6.05 |
| ICICI Bank Ltd. | Bank | 5.41 |
| Infosys Ltd. | Information Technology | 3.44 |
| State Bank of India Ltd. | Bank | 3.32 |
Source: ICICI Pru
Performance over 24 years
If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 5.93 lakhs. This fund has outperformed the benchmark in all time horizons.
Source: icicipruamc.com
The fund has given consistent returns and has outperformed the benchmark over the period of 24 years by generating a CAGR (Compounded Annual Growth Rate) of 18.17%
Fund Manager
Mr. Ihab Dalwai is the fund manager of the Scheme. He has been managing this scheme for 8 years. He is is a Chartered Accountant as well as a CFA.
He is associated with ICICI Prudential AMC since April 2011. He has over 11 years of industry experience.
Who should invest?
Investors looking for
- Long-term wealth creation solution.
- Looking to invest in both large-cap and mid-cap stocks.
Why invest?
- This scheme provides an opportunity for higher capital appreciation over the long term.
- The major portfolio composition of large-cap stocks helps in reducing the overall portfolio volatility and provides less volatile and reasonable returns.
Horizon
- One should look at investing for a minimum of 5 years or more
- Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The fund is good for investors who want exposure to equity and equity-related instruments but with optimized risk. It helps an investor with long-term wealth creation in a much more stable way as compared to instruments with a higher risk appetite.
