Skip to main content

ICICI Prudential Midcap Fund

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Mid and small cap stocks are stocks of companies having a high growth potential over longer time frame. To put it simply, they have the potential of being the large caps of the future. But having said that, mid cap stocks are high risk-high return investment proposition as they aim to generate wealth by generating a superior alpha (as compared to large caps) returns, but exposing their investors to greater risk. Moreover, during turbulent times they have a tendency to plunge more as compared to stocks in the large cap segment. Hence the funds focusing on the mid and small cap segment are ideal for investors willing to take high risk for relatively higher gains.

ICICI Prudential Midcap Fund (IPMF) is one such open-ended fund from ICICI Prudential Mutual Fund, which follows a blend style of investing. Being launched in October 2004, the fund has a performance history of over 6 years now.

The fund's investment objective is "to generate capital appreciation by actively investing in diversified midcap stocks. The scheme will primarily invest in companies that have a market capitalisation between ` 100 crores to ` 2000 crores. However, there is no assurance that the investment objective of the scheme will be realised."

While investing in stocks, IPMF intends to keep those companies on radar which have a high potential to emerge as better performers in the future. However, the companies would be assessed on the basis of the following:

  • High growth capability
  • High potential to expand capacity
  • Current valuations
  • Liquidity
  • Entrepreneurial skills
  • Global competitiveness
  • Professional management

How IPMF has fared vis-à-vis its peers?

Despite having fairly robust criteria for selecting stocks, the performance of IPMF has been poor. Over a 3-Yr and 5-Yr time frame, IPMF has clocked a return of mere 11.0% and 2.4% respectively thereby underperforming its benchmark and its peers by far.

 

When assessed on the volatility front, IPMF has exposed its investor to higher risk (as revealed by its Standard Deviation of 10.30%). However, the same isn't well compensated in the form of the risk adjusted returns (as reveled by the Sharp Ratio of 0.07).

 

Over the past one year IPMF's exposure to midcap and small caps has been in the range of 69% - 93%, while its exposure to large caps has ranged from 4% - 25% but it seems that the fund has missed the rallies that occurred in midcaps.

As per the latest disclosed portfolio top 10 holdings and top 5 sectors form 36% and 41.19% of its equity holdings respectively.

So far the IPMF has refrained from churning its portfolio too often (as revealed by its lower portfolio turnover ratio of 0.68 times), and adopts a "buy and hold" strategy. But, it seems that the stock bets taken by the fund manager have gone wrong, as the fund appears insipid on the returns front as compared to its peers.

 

Fund Manager Profile

Name of the Fund Manager

Mr Mrinal Singh

Total Work Experience

Over 9 years

Managing the fund since

May-11

Qualifications

BE (Mech.), PGDM (SPJIMR - Mumbai)

 

Despite having a fairly robust criteria for selecting stocks for its portfolio, ICICI Prudential Midcap Fund has generated dismal returns for its investors, which portrays a possibility of stock bets taken by the fund manager going wrong. While the fund has been a high risk taker, it hasn't compensated its investors for the risk taken since its risk-adjusted returns are rather pale. In fact the fund has been underperformer against its benchmark – CNX Midcap Index over 1-Yr, 3-Yr and 5-Yr time frame. It lags the competition by far.

ICICI Prudential Midcap Fund comes from a fund house which follows a systematic and process oriented approach to fund management. The Fund house has been in the industry for years now and has been one of the reputed fund houses.

Despite of all these merits IPMF has completely failed to generate returns even for the long term investors. This reaffirms our belief that there is no substitute to rigorous analysis while selecting a fund for investment. Merely buying a fund from a reputed fund house will not automatically generate returns for you. But, rigorous analysis and timely review definitely enhances your chances to benefit from mutual fund investing.

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...
Read more

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now