Fund Of The Month

Fund Of The Month

Fund of the Month: : ICICI Prudential Bluechip Fund

Fund Manager: Anish Tawakley, Vaibhav Dusad


SEBI Categorisation: Large Cap Fund

Type & Investment Objective


The fund aims to achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of large cap companies. The fund is a large cap equity fund that invests minimum 80% in large caps and can take upto 20% exposure in mid cap stocks. The fund manager maintains a portfolio of large cap stocks with bottom up investment approach and invests in quality companies which have high growth potential.



Fund Commentary

Outlook


  • The AMC continues to remain selectively positive in global space. With major developed economies facing stagflation and financial sector instability, the AMC believes China and Japan may do well. Global cues such as US and UK central bank actions, geopolitical risks and foreign capital flows may continue to influence equity markets.
  • Valuations though have come off, continue to remain on the higher side. The AMC’s Equity valuation index suggests a neutral stance for investing in Indian markets. The AMC continues to remain positive on domestically facing sectors like Auto, Cement, Telecom etc. From a contrarian perspective, AMC is considering a few of the consumer staple names. Financials, Insurance and Consumer Staples are some of the attractive pockets in the current market.
  • India’s macroeconomic situation remains strong and budget cemented Government's commitment to further bolster economic health. Valuations are not cheap while Business Cycle sustains its positive momentum. Other positives include strong govt. reforms and India as one of the favoured destinations for China +1 theme. The growth momentum may soften in the coming months as global growth slows, thereby impacting exports and industrial activity along with impact of high interest rates domestic consumption.




Sectoral Overweights

  • Auto: Consistent demand, Positive Catalysts, New Model Launches.
  • Industrials: Increased capex focus for boosting manufacturing in India and China plus one theme playing out well.
  • Telecom: Capex overshoots are more likely for 5G Capex Monetization, rising mobile data subscribers in India provide for faster 5G penetration.


Sectoral Underweights

  • Metals & Mining: Recessionary fears slowing global demand, sanction on Russian metals causing trade rebalance, increasing steel supply from China.
  • Consumer Non-Durables: Muted demand, margin pressure likely, price hikes being taken
  • IT: Macro uncertainties impacting tech spends, weakness in global manufacturing and BFSI


Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

  • The top 3 outperformers in this scheme for the last one year have been Power, Banks and Finance, Industrial products and capital goods, while the 3 underperformers for the fund have been internet, metals and mining, Consumer non-durables.

    This fund is recommended for investors with an investment horizon of 2-3 years, in line with investors’ individual risk profile and product suitability.


Top Holdings                                                                                                                                                             ( As 29 February 2024)



Company

% Allocation

Sector

% Allocation

ICICI Bank Ltd.

8.27

Banks & Finance

22.11

Reliance Industries Ltd.

8.10

Oil & Gas, Energy

16.04

Larsen & Toubro Ltd.

6.76

Auto & Auto Ancillaries

10.57

Infosys Ltd.

5.46

IT

8.99

Axis Bank Ltd.

4.66

Housing & Construction

8.20

Total

33.25

Total

65.91




Returns (%)                                                                                                                                                      As on 31 March 2024 )



Period

Fund

Nifty 100 TRI

3 Months

8.29

4.75

6 Months

21.28

17.48

1 Year

42.23

35.01

3 Years

21.46

17.00

5 Years

17.86

15.50

Since Inception

15.33

--



                                                                                                                              Absolute for <= 1 year and compounded annualized for > 1 year

Scheme Features

  • Options: Growth and Income Distribution cum capital withdrawal (IDCW)
  • Minimum Investment amount: Rs. 100
  • Load Structure Exit Load: "If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
  • Benchmark Index: Nifty 100 TRI
  • Feb 2024 [Fund Size in Crs] 51,554.28
  • NAV: 52 Week High / Low: Rs. 94.52 / 66.1




This product is suitable for investors who are seeking*:


  • Capital appreciation over long term.
  • Investment in a diversified portfolio predominantly consisting of equity and equity related instruments of large cap companies




*Investors should consult their financial advisors if in doubt about whether

.



Source for entire data stated above is ICRA Analytics Ltd. (For Disclaimer of ICRA Analytics Ltd, refer https://icraanalytics.com/home/disclaimer)



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