Skip to main content

Mutual Fund Review: Prudential ICICI Growth Plan

Type: Equity Diversified
Fund Manager: S Naren, Deven Sangoi
Inception Date: 19-Jun-1998
 
Prudential ICICI Growth Plan – cumulative was launched in Jun 1998 and has been in operation for more than eight years now, and is predominantly a large cap oriented stock. The scheme has grown at a CAGR of 29.43%, whereas the scheme's benchmark index S&P Nifty has appreciated by 17.04 % in the same period. The scheme due to its large cap focus has managed to maintain its rankings in the top quartile inspite of the recent market meltdown. The investment objective of the scheme as per its offer document is to seek to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities.
 
Prudential ICICI Mutual fund has Rs 34118.87 crores of assets under management, which is a growth of around 59% over the last years. Only UTI Mutual Fund has a greater asset base at Rs 35027.49 crores.

Prudential ICICI Growth Plan has invested in 34 scrips, top 5 holdings account for 21.56% of the portfolio and top 10 scrips constitute 36.85% of the portfolio. Reliance Industries receives the highest weightage in this month's portfolio with around 5.4% of the total net assets being invested in the scrip.
 
 

The total equity allocation is 86.35% and 12.67% of the net assets are invested in cash and equivalent. The scheme seem to have unwind some positions in the equity markets in view of the increased volatility lately as the equity allocation has come down from 95.22% in Apr 06 to current levels.

Diversified, Banks and Auto & IT are some of the sector which the fund manager is bullish on as reflected by higher asset allocation in these sectors in the last one year, and even in the recent portfolio these sectors dominate with Diversified sector alone constituting 18.17% of the net assets, with Banks and IT sectors receiving 9.66% and 8.37% allocation respectively.

Infosys Technologies, ONGC, Grasim Industries and TCS are some of the other top holdings of the portfolio. And between them they account for one-fifth of the portfolio.

The scheme has done quite a bit of shopping this month and as many as seven new stocks have entered the portfolio, namely, Bank of Baroda, JP Associates, Zee Telefilms, BHEL, Aventis Pharma, Tata Steel and Tech Mahindra, whereas, the scheme exited from some of the stocks like EID Parry, Gujarat Ambuja Cements, Indian Hotels, MTNL, NTPC and Triveni Engg. & Ind. Ltd.

 

Midcap stocks form only a miniscule part of the portfolio and traditionally Midcap and small cap exposure has not gone beyond 7-10% in the last one year, which has resulted in lending stability to the portfolio.
 
The scheme has managed to outperform its peer group average in the last one year period due to its focus on large cap stocks, as Midcap stocks have taken a severe beating in the recent crash, and most scheme with sizeable Midcap exposure are yet to recover from the aftermath. The scheme's CAGR returns of around 29% since the last eight years is noteworthy as it has seen both the phases of the market and has delivered in all circumstances. Investors looking for a scheme which can lend long term stability to their portfolio may well find their answer in Prudential ICICI Growth Plan
 

Popular posts from this blog

Debt Mutual Fund Dividends are Taxable

DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT.   The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...
Read more

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...
Read more

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

Mutual Fund Exit Load Changes

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 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
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