Value investing is an investment strategy where the underpriced instruments are targeted which have a potential to grown in future. It is a complex strategy which involves greater risk and needs an experienced management staff to grab the benefits through value investing. ICICI Prudential Mutual Fund provides a scheme which follows the value investing strategy to generate returns by investing predominantly in equity instruments of large-cap companies. The fund is named as ICICI Prudential Value Discovery Fund (G) and has performed well in the long-term.
ICICI Prudential Mutual Fund is one of the largest asset management companies in India and has played a huge role in growth and development of mutual fund industry in India. It has assets under management of more than Rs 3 lakh crore and manages more than 1000 innovative schemes which have fulfiled the financial goals of thousands of investors.
Investment Strategy of ICICI Prudential Value Discovery Fund (G)
Though most of the instruments of investment are equity oriented and are of large-cap companies, the fund manager is not restricted to invest in any particular market-cap category. The aim is to seek for the equity instruments with an attractive valuation. The large-cap companies ensure the safety of the corpus as they are less volatile to the sudden rise and fall of the market.
Performance of ICICI Prudential Value Discovery Fund (G)
The fund has fulfilled the goals of long-term investors as it has generated an annualised return of 23.2% in 5 years which means Rs 10,000 invested 5 years ago as a lumpsum would be priced at Rs 28,313 today. It has also shown an annualised return of 18.84% in 10 years and 21.24% since its inception in August 2004. It competes with the benchmark S&P BSE 500 TRI and has beaten it many times in the past. (data as of 25th June 2018)
Portfolio of the Fund
The portfolio of the fund is highly oriented towards equity instruments of large-cap companies as the fund manager focuses on the safety of the corpus but the aim is to buy the stocks which have a lower price than the intrinsic price which can be sold later for a better value. Approximately 80% of the corpus is generally invested in equity instruments of large-cap companies and a small proportion in mid-cap companies. No particular sector is targeted, but majorly companies of technology, utilities, pharmaceuticals, and automotive sectors comprise the maximum corpus of the scheme.
The fund is managed by Mr Mrinal Singh and Mr Atul Patel. Mr Singh is associated with ICICI Prudential AMC since June 2008 and is a senior fund manager. He is managing ICICI Prudential Value Discovery Fund since February 2011. He is a B.E. and PGDM from SP Jain Institute of Management and Research, Mumbai. Mr Patel is a B.Com, CA and CWA. He has vast work experience in the finance sector of Indian as well as International market. He has been managing the fund since May 2012.
The fund supports a minimum initial investment of Rs 1000 after which additional investment of Rs 500 can be done anytime. The expense ratio of the scheme is 2.11%, and the NAV of ICICI Prudential Value Discovery Fund is Rs 144.31. (data as of 25th June 2018)
The scheme is of moderate risk grade and is advisable for the investors who seek long-term capital appreciation by the method of value investing. The fund manager targets large-cap companies with lower price, hence it is less risky and can generate a healthy return over the long term. The investors are advised to consult with their financial adviser before investing.
The article describes the details of ICICI Prudential Value Discovery Fund. Every aspect regarding investment is well introduced in the content.