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 consumer product – ICICI Prudential Multi-Cap Fund.
About the ICICI Prudential Multi Cap Fund
Investment objective
To generate capital appreciation through investments in equity & equity-related instruments across large-cap, mid-cap, and small-cap stocks of various industries.
Investment strategy
The investment universe of the Scheme is a unique blend of large-cap, mid-cap, and small-cap stocks. The Scheme will aim to hold optimum exposure to large, mid, and small-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 would use a combination of top-down and bottom-up research for stock selection.
A top-down approach will be based on macroeconomic conditions, and underlying trends while a bottom-up approach shall be followed for selecting stocks with growth prospects, low leverage levels, good corporate governance, robust financials, and good cash flow management.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks that account for roughly 15% of the portfolio. The top five sectors hold nearly 42% of the portfolio.
Source: Morningstar, ICICI MF
Top 5 holdings of ICICI Prudential Multi-cap Fund
| Name | Weightage % |
| ICICI Bank Ltd | 6.45% |
| Infosys Ltd | 3.07% |
| HDFC Bank Ltd | 3.02% |
| TVS Motor Company Ltd | 2.60% |
| Sun Pharmaceutical Industries Ltd | 2.50% |
Source: ICICI MF
Performance
| Fund name | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| ICICI Pru Multicap Dir | -1.26 | 3.4 | 4.37 | 15.81 | 10.73 | 14.47 | 15.01 |
| S&P BSE 500 TRI | -2.52 | 1.69 | 2.47 | 16.00 | 10.31 | 14.48 | 13.4 |
Source: ICICI MF
The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception.
Fund manager
- Mr. Sankaran Naren has been associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.
- Mr. Anand Sharma has been appointed as the Senior Investment Analyst – MF Equity in the Investments Department of ICICI Prudential Asset Management Company Limited w.e.f. November 10, 2021. He joined ICICI Prudential Asset Management Company in April 2014. He has previously worked with Oracle Financial Services Software Ltd. He holds a B.E. (Computer Engineer), and a Master of Management Studies, from the University of Mumbai.
Who should invest in ICICI Prudential Multi Cap Fund?
- Investors who aim to take advantage of India’s long-term growth potential with an investment horizon of 5 years and above.
Why invest in this Fund?
- The scheme focuses on identifying stocks across sectors that are likely to transform into tomorrow’s market leaders resulting in potential capital appreciation over time.
- The scheme’s exposure to mid and small-caps provides an opportunity for higher capital appreciation over the long term whereas the large-cap exposure aims to provide less volatile reasonable returns.
Horizon
- One should look at investing for a minimum of 5-7 years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The ICICI Prudential Multi-cap Fund was launched in October 1994 and in its track record of nearly twenty-eight years, the fund has delivered ~15% CAGR consistently.
Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
