ICICI Prudential Long Term Equity Fund

ICICI Prudential Long-Term Equity Fund (Tax Saving) 

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 Long Term Equity Fund (Tax Saving).

About ICICI Prudential Long Term Equity Fund 

– Investment objective

To generate long-term capital appreciation through investments made primarily in equity and equity-related securities of companies.  

– Investment Process  

Diversification across capitalizations: The scheme constitutes a portfolio, which is a blend of large, mid, and small-cap stocks.

The fund manager may change the proportion of large-cap and mid/small-cap stocks in the portfolio depending on the market conditions.  

Long-term focus: The three-year lock-in period in the ELSS category enables the fund manager to select stocks with a long-term view as there are no short-term redemption pressures, thus providing opportunities for potential returns. 

– Portfolio Composition 

The portfolio holds the major exposure in large-cap stocks at 73% and sectorally major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 67% of the portfolio.

ICICI-Long-Term-Equity-Term-Process
Note: Data as of 31st Oct 2022. 
Source: Value Research

Top 5 holdings

Name Sector Weightage % 
ICICI Bank Financial Services 9.01 
Infosys Technology 6.16 
Axis Bank Financial Services 5.41 
Bharti Airtel Communication 5.10 
HDFC Bank Financial Services 4.26 
Note: Data as of 31st Oct 2022. 
Source: Value Research 

Performance over 22 years

If you would have invested 10 lakhs at the inception of the ICICI Prudential Long Term Equity Fund, it would be now valued at Rs 6.15 crore.

IICICI Prudential Long Term Equity Fund-Performance-over-22-years
Note: Performance of the fund since launch; Inception Date – Aug 19, 1999, till Nov 7, 2022. 
Source: Moneycontrol 

The fund has given consistent returns and has outperformed the benchmark over the period of 22 years by generating a CAGR (Compounded Annual Growth Rate) of 19.39%.

Fund manager 

Prior to joining ICICI Prudential Mutual Fund, he worked with SBI Mutual Fund, Kotak Institutional Equities, CIMB Securities, RBS Equities India Pvt. Ltd., Indiabulls Securities Ltd., and Reliance Equities International Pvt. Ltd.

Who should invest in ICICI Prudential Long-Term Equity Fund? 

Investors looking to 

  • Save tax by investing in an equity portfolio 
  • Build core equity portfolio for long-term wealth creation with steady growth 

Why Invest in ICICI Prudential Long-Term Equity Fund? 

  • ICICI is a renowned name in the finance industry with a proven track record 
  • Strong stock selection approach with a diversified portfolio reducing concentration risk. 

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 Long Term Equity Fund is one of the best funds with a proven track record of 22 years and has delivered 20% CAGR consistently.

Thus, suitable for investors who can take a little higher risk and can expect comparatively higher returns than other tax-saving options.  

Disclaimer

This is not recommendation advice. All information in this blog is for educational purposes only.

Add comment

Your email address will not be published. Required fields are marked *