ICICI Prudential Multi-Cap Fund

ICICI Prudential Multi-Cap Fund. Who should invest?

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 Multi-Cap Fund.

About 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 Process  

The ICICI Prudential Multi Cap Fund follows a blended style of investing which consists of growth and value stocks of large-, mid and small-cap companies.

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 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-Portfolio-composition
Note: Data as of 31st Oct 2022. 
Source: Valueresearch 

 Top 5 Holdings 

Name Sector Weightage % 
ICICI Bank Financial 7.86 
HDFC Bank Financial 3.96 
TVS Motor Automobile 3.34 
Infosys Technology 3.33 
Sun Pharmaceutical Healthcare 2.42 
Note: Data as of 31st Oct 2022. 
Source: Valueresearch 

Performance over 28 years

If you would have invested 10 lakhs at the inception of ICICI Prudential Multi Cap Fund, it would be now valued at Rs 4.7 crore. 

ICICI Prudential Multi-Cap Fund-Performance-over-28-years
Note: Performance of the fund since launch; Inception Date – Oct 01, 1994 till Nov 07, 2022. 
Source: Moneycontrol 

The ICICI Prudential Multi Cap Fund has given consistent returns and has outperformed the benchmark over the period of 28 years by generating a CAGR (Compounded Annual Growth Rate) of 14.67%.

Fund Manager 

  • Anand Sharma: Prior to joining ICICI Prudential AMC, he worked with Oracle Financial Services Software Ltd. 
  • Sankaran Naren: Prior to joining ICICI Prudential AMC, he worked with Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd., and Yoha Securities

Who should invest in ICICI Prudential Multi-Cap Fund? 

Investors looking to 

  • Diversify their portfolio into multiple market capitalization company 
  • Build core equity portfolio for long-term wealth creation with steady growth 

Why to invest in ICICI Prudential Multi Cap Fund? 

  • ICICI is the renowned name in the finance industry with proven track record 
  • Strong stock selection approach with top-down and bottom-up approach 

Horizon 

  • One should look at investing for minimum 5 years or more 
  • Systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackling market volatility 
Conclusion 

The ICICI Prudential Multi Cap Fund has delivered consistent returns over 28 years with proven track record and has deliver 14.67% CAGR consistently.

Thus, suitable for investors who wants to diversify their portfolio under one roof.  

Disclaimer

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

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