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

Tata Mutual Fund

Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start. Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed. It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds. The funds of Tata AMC are known to...
Read more

UTI Mutual Fund

Even though only a few of UTI’s funds are great performers, this public sector fund house has many advantages that its rivals do not. It has a huge base of retail equity investors and a vast distribution network. As a business, it looks stronger than ever, especially in the aftermath of credit crunch. UTI is, by a large margin, the most profitable fund company in the country. This is not surprising, since managing equity funds is more profitable than debt. Its conservative approach and stable parentage is likely to make it look more attractive to investors in times to come. UTI’s big problem is the dragging performance that many of its equity funds suffer from. In recent times, the management has made a concerted effort to improve performance. However, these moves have coincided with a disastrous phase in the stock markets and that has made it impossible to judge whether the overhaul will eventually be a success. UTI’s top performers are a few index funds, some hybrid funds and its inf...
Read more

Salary planning Article

1. The salary (basic + DA) should be low. The rest should come by way of such allowances on which the employer pays FBT and you don't pay any tax thereon. 2. Interest paid on housing loan is deductible u/s 24 up to Rs 1.5 lakh (Rs 150,000) on self-occupied property and without any limit on a commercial or rented house. 3. The repayment of housing loan from specified sources is also deductible irrespective of whether the house is self-occupied or given on rent within the overall ceiling of Rs 1 lakh of Sec. 80C. 4. Where the accommodation provided to the employee is taken on lease by the employer, the perk value is the actual amount of lease rental or 20 per cent of the salary, whichever is lower. Understandably, if the house belongs to a family member who is at a low or nil tax zone the family benefits. Yes, the maximum benefit accrues when the rent is over 20 per cent of the salary. 5. A chauffeur driven motor car provided by the employer has no perk value. True, the company would...
Read more

8 Investing Strategy

The stock market ‘meltdown’ witnessed since the start of 2005 (notwithstanding the recent marginal recovery) has once again brought to the forefront an inherent weakness existent in our markets. This is the fact that FIIs, indisputably and almost entirely, dominate the Indian stock market sentiments and consequently the market movements. In this article, we make an attempt to list down a few points that would aid an investor in mitigating the risks and curtailing the losses during times of volatility as large investors (read FIIs) enter and exit stocks. Read on Manage greed/fear: This is an important point, which every investor must keep in mind owing to its great influencing ability in equity investment decisions. This point simply means that in a bull run - control the greed factor, which could entice you, the investor, to compromise with your investment principles. By this we mean that while an investor could get lured into investing in penny and small-cap stocks owing to their eye-...
Read more

Debt Funds - Check The Expiry Date

This time we give you an insight into something that most debt fund investors would be unaware of, the Average Portfolio Maturity. As we all know, debt funds invest in bonds and securities. These instruments mature over a certain period of time, which is called maturity. The maturity is the length of time till the principal amount is returned to the security-holder or bond-holder. A debt fund invests in a number of such instruments and each of these instruments would be having different maturity times. Hence, the fund calculates a weighted average maturity, which would give a fair idea of the fund's maturity period. For example, if a fund owns three bonds of 2-year (Rs 30,000), 3-year (Rs 10,000) and 5-year (Rs 20,000) maturities, its weighted average maturity would be 3.17 years. What is the big deal about average maturity then, you may ask. Well, knowing a fund's average maturity is important because it tells you how sensitive a fund is to the change in interest rates. It is ...
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