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ICICI Prudential Value Discovery Fund delivers 20.03% CAGR in over 17 years vs. Nifty 50 TRI CAGR* of 15.91%

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ICICI Prudential Mutual Fund celebrates 17 years of ICICI Prudential Value Discovery Fund

One of the largest and oldest value funds in the Indian mutual fund industry, ICICI Prudential Value Discovery Fund has completed 17 years in existence. The Scheme has witnessed significant investor interest over the years and has thus emerged as the largest scheme in the value category, with a total asset under management (AUM) of Rs 21,195 crore. Data as of July 31, 2021.

Furthermore, the scheme accounted for nearly 30% of the total AUM in the Value Category. Data as of July 2021. Source: Value Research

The scheme follows a value investment style by investing in diversified portfolio of stocks that have attractive valuations but are quoting at a discount to their intrinsic value.

Speaking on the occasion of 17 years completion, Nimesh Shah, MD & CEO of ICICI Prudential AMC says, “We are happy that through our product offering we have been able to contribute to favourable investment outcomes of wealth creation for our investors over a long term.”

“Global experience has always been that value as a strategy will not work all the time but tends to deliver sizeable returns in the long run. Until September 2020, value was out of favour which was also the case even during 1988-89 and 2007-2008. In value style, we have seen that investments made in 1999 did very well because at that point in time markets were largely focused on technology stocks. Similar was the case in 2007 when infrastructure was in focus. Hence, we believe that value investing  at a time when market are elevated tends to do well as value focuses on investing in sectors which are out of favour but offer long term potential,” says S Naren, ED & CIO, ICICI Prudential AMC. He further adds, “Even in current times, there are select sectors where valuations are attractive and many of such pockets are yet to deliver returns since 2008. Most of the sectors which are cyclical in nature, we believe, present good value till the time central banks tighten monetary policy.”  

If an investor had invested a lumpsum of Rs. 1 lakh at the time of inception (August 16, 2004), as of July 31, 2021, that investment would have been worth Rs. 22.13 lakh i.e. a CAGR of 20.03%. In the same time frame, the Nifty 50 TRI (Additional benchmark) has delivered a CAGR of 15.91% and the corresponding worth of investment would be Rs. 12.24 lakhs. (As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception or the required period are not available).  

With value investing being suited for long-term investing, SIP emerges as the ideal investment pathway. In terms of SIP performance, a monthly investment of Rs 10,000 via SIP since the inception, which would amount to a total investment of Rs 20.4 lakh, would have grown to Rs 1.08 cr as of July 31, 2021 i.e. a CAGR of 17.5%. A similar investment in Nifty 50 would have yielded a CAGR of 13.22% for the same period. (The returns are calculated by XIRR approach assuming investment of Rs 10000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions.)

During the past three years, the fund has invested across market capitalisation with predominant allocations to large cap stocks.  Large cap allocation averaged 71.24% during this period while allocations to mid-cap and small cap stocks averaged 13.58% and 3.42% respectively. During the period, it held 18 stocks consistently which accounted for average 51.91% of the portfolio allocation.

For further information, please contact Adil Bakhshi – 91-9920010203

Riskometer & Disclaimer

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Notes:

1. Different plans shall have different expense structure. The performance details provided herein are of ICICI Prudential Value Discovery Fund.

2. The scheme is currently managed by Sankaran Naren and Dharmesh Kakkad. Mr. Sankaran Naren has been managing this fund since Jan 2021. Total Schemes managed by the Fund Manager is 20.  (20 are jointly managed). Mr. Dharmesh Kakkad has been managing this fund since Jan 2021. Total Schemes managed by the Fund Manager is 9 (7 are jointly managed).

3. Date of inception:16-Aug-04.

4. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.

5. Load is not considered for computation of returns.

6. In case, the start/end date of the concerned period is a non-business date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period

7. The benchmark of this scheme has been revised from S&P BSE 500 TRI to Nifty 500 Value 50 TRI w.e.f. February 17, 2020.

8. As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception or the required period are not available.

9. The performance disclosed above is of ICICI Prudential Value Discovery Fund. Performance of merging scheme i.e ICICI Prudential Value fund series 18, ICICI Prudential Value fund series 19 and ICICI Prudential Value Fund – Series 20 will be made available to investors on request.

SIP Performance

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Past performance may or may not be sustained in future

*Inception date is 16 Aug 2004. **Scheme benchmark is Nifty 500 Value 50 TRI.

The performance of the scheme is benchmarked to the Total Return variant of the Index.

Click Here to view performance of other schemes managed by fund managers of the scheme.

(An open ended equity scheme following a value investment strategy)

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It may be noted that risk-o-meter specified above is as per scheme’s portfolio as on July 31, 2021.. The same shall be updated in accordance with provisions of SEBI circular dated October 5, 2020 on Product labelling in mutual fund schemes on ongoing basis.

*Returns mentioned are of Nifty 50 TRI, benchmark of the scheme is Nifty 500 Value 50 TRI. As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception or the required period are not available.

The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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