Skip to main content

ICICI Prudential Banking & Financial Services Fund

Invest Mutual Funds Online

Download Mutual Fund Application Forms

The banking and financial services sector has played a significant role in the development of trade, commerce and industry. This in turn has led to sector being very integral to the process of economic reforms and growth. Thus, when the country is clocking a blistering pace of economic growth rate, investing in banking and financial Services sector looks an attractive investment proposition.

It is noteworthy that India's banking and financial services sector stands on strong foundations of very prudent policy framework laid by the regulator(s). Moreover, with our economy being a developing one, the avid appetite for consumer and corporate credit, often works in favour of this sector. Also, favourable demographics and several unbanked regions makes the sector promising to invest. Likewise, other allied industries such as insurance, asset management and stock broking which are integral, also broaden the scope of investment in the theme.

ICICI Prudential Banking & Financial Services Fund (IPBFSF) is one such open-ended thematic fund, from the stable of ICICI Prudential Mutual Fund that focuses on investing in opportunities available in the banking and financial services sector. It is mandated to invest 70%-100% of its asset in equity and equity related securities of companies engaged in banking and financial services, and the rest (i.e. upto 30%) in debt market instruments. Launched in August 2008, IPBFSF has been in existence for a little over 3 ½ years now.

Fund Profile & Investment Decision Snapshot

 

Type of scheme

Open-ended

Category

Sector/Thematic

Sub-category

Banking & Financial Services

Style

Blend

Launch date

22-Aug-08

Risk-Return proposition

High Risk-Moderate Return

 

Investment Objective and Proposition

The fund's primary investment objective is "to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services."

 

Portfolio Characteristics

In the last one year, exposure of IPBFSF to large caps has ranged between 57.0%-72.0% of its assets while the exposure to midcaps was in the range of 21.0%-31.0%. The fund has occasionally taken aggressive cash calls in the past 1 year as its exposure to debt and cash has remained in the range of 3.0%-16.0%.

Being a sector fund, IPBFSF follows top-down approach while buying stocks for its portfolio whereby it invests only in Banking and Financial Services Sector. Under normal circumstances, the fund invests about 70%-100% of its assets in equity and equity related instruments belonging to Banking and Financial services sector; including derivatives to the extent of 75% of the net assets. For defensive positioning of the portfolio, the fund manager has the flexibility to invest in debt, cash and cash equivalent assets to the extent of 30%. Also, the fund has freedom to invest across market capitalisations and is benchmarked against BSE BANKEX.

 

Equity Portfolio

Holdings

Nov 2011

Dec 2011

Jan 2012

Feb 2012

Mar 2012

HDFC Bank Ltd.

10.6

10.8

10.8

15.3

22.2

ICICI Bank Ltd.

19.8

21.9

21.9

19.3

17.8

IndusInd Bank Ltd.

-

6.6

6.6

7.9

8.0

Bank Of Baroda

6.4

5.8

5.8

6.0

5.9

Sundaram Finance Ltd.

2.5

4.0

4.0

5.2

5.4

Axis Bank Ltd.

9.3

5.0

5.0

5.3

5.1

State Bank Of India

6.6

6.0

6.0

4.8

4.4

ING Vysya Bank Ltd.

2.4

3.8

3.8

3.7

3.7

Mahindra & Mahindra Financial Services Ltd.

2.0

2.5

2.5

4.2

3.6

IPBFSFC Ltd.

-

-

-

3.6

3.6

 

As per the portfolio disclosed on March 31, 2012, the fund holds in all 18 stocks. Top-10 stocks constitute 79.7% of the portfolio, while its top-5 sector concentration has been 97.2% of its total portfolio. As on March 31, 2012, the large caps constitute 71.5% of the portfolio, while its exposure to mid and small caps was at 25.6%, while cash and cash equivalents assets to the tune of 2.8%. The fund manager of IPBFSF has not churned the portfolio aggressively as revealed by its portfolio turnover ratio of 0.68 times - which is considered low to moderate.

 

How IPBFSF has fared vis-à-vis its peers

Scheme Name

6-Mth (%)

1-Yr (%)

3-Yr (%)

5-Yr (%)

Std. Dev. (%)

Sharpe Ratio

Reliance Banking (G)

6.3

-11.5

30.5

20.9

9.66

0.26

Sahara Banking & Financial Services (G)

5.4

-10.4

29.9

-

9.88

0.25

Religare Banking (G)

5.0

-8.4

28.6

-

8.46

0.25

ICICI Pru Banking & Fin Serv (G)

8.4

-7.8

28.1

-

8.79

0.24

UTI Banking Sector (D)

7.7

-9.6

28.0

15.1

9.25

0.24

Sundaram Fin Serv Oppor (G)

6.6

-11.7

26.3

-

9.88

0.22

BSE BANKEX

8.1

-8.0

30.0

12.2

10.41

0.24

 

The table above reveals that IPBFSF's performance has been ordinary. Over a 3-Yr time frame, the fund has generated returns at 28.1% CAGR, thereby underperforming its benchmark index – BSE BANKEX with a noticeable margin. On the volatility front, the fund has exposed its investors to low risk (as revealed by the Standard Deviation of 8.79%) thereby being less volatile than some of its peers in the category as well as its benchmark. On the risk-adjusted return parameter too (as gauged by the Sharpe ratio), returns appear mediocre in comparison with its peers.

 

Performance across Market Cycles

 

BEAR PHASE

BULL PHASE

CORRECTIVE PHASE

22-Aug-2008
-
09-Mar-2009

09-Mar-2009
-
05-Nov-2010

05-Nov-2010
-
19-Apr-2012

ICICI Pru Banking & Fin Serv (G)

-40.2%

117.5%

-13.2%

BSE BANKEX

-45.4%

135.5%

-13.6%

Study of performance across market cycles reveals that IPBFSF has performed reasonably well during the bear and corrective market phases. However, it has failed to outpace its benchmark in the bull market phase.

 

Fund Manager Profile

Name of the Fund Manager

Mr. Venkatesh Sanjeevi

Total Work Experience

Over 4 years

Managing the fund since

Feb-12

Qualifications

B.com, ACA, PGDM

 

As seen above LICMF Opportunities Fund`s performance is nothing to vie for. Moreover, the fund has been unable to provide appealing returns to its investors for the level of risk taken. Also the fund's large cap bias has resulted in the fund's inability to take the absolute advantage of the mid rallies of the past.
 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

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

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
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