Value type mutual fund schemes are gaining popularity among investors and the reason behind that is their investment style and the value for money they provide on long-term investments. Value schemes basically select stocks which are trading at low levels but have good fundamentals and scope for growth. Today, we are going to discuss one such value scheme that has gained the trust of millions of investors over the years, and the scheme is ICICI Prudential Value Discovery Fund.
A Brief Introduction of Scheme
This scheme was launched on Aug 16, 2004, under the value-oriented equity category, with the objective to provide investors with good long-term returns by investing in a diversified portfolio of value stocks. This scheme has gained a large number of investors because of its consistent performance over the years and is currently managing an asset size of Rs 16,130 crore (as on Jul 11, 2018). ICICI Prudential Value Discovery Fund NAV as on Jul 11, 2018, is Rs 144.3 and the expense ratio that will be charged annually is 2.32% (as on Jun 30, 2018) of your principal amount. It has provided returns of 6.97%, 8.23%, 22.46%, and 19.72% in 1, 3, 5, and 10 years respectively. The scheme has beaten its benchmark and category in long-term returns of 5 and 10 years, but due to the volatility of 2017-18, it has failed to beat the benchmark in 1 and 3 years returns. You can start investing in this scheme with a minimum investment of Rs 1000 and can start a SIP for as low as Rs 500.
Asset Allocation
ICICI Prudential Value Discovery Fund invests around 92.36% of its total investment in equity instruments and the rest in debt instruments. As for equities, it invests predominantly in large-cap stocks. It has 82.60% of total equity investment in large caps, 13.90% in mid caps and 3.49% in small caps. The major sectors that the scheme invests in are energy, technology, healthcare, finance, automobile, and engineering. The top value stocks that the scheme invests in are Sun Pharmaceutical Industries, Infosys, Wipro, Mahindra & Mahindra, ITC, State Bank of India, HDFC Bank and Larsen & Toubro. All these stocks were trading really high till the end of Jan 2018 but due to past volatility are trading at very lower levels now. All these stocks have great fundamentals and are expected to reach their intrinsic values soon. For a detailed portfolio of this scheme, you can visit MySIPonline.
Who can Invest?
ICICI Prudential Value Discovery Fund is an equity scheme so the risk involved is moderately high. As we can see, the fund is not performing well due to the current market volatility. So investors who are looking for short-term investments should stay away from it. On the other hand, if you are looking for an investment of 5-7 years and have moderate risk appetite then this is one of the best options for you. Investors who are new to the mutual fund market should stay away from this scheme for some time.
So this covers all the basic information about the fund that you will need to know if you are planning to invest in ICICI Prudential Value Discovery Fund. This scheme has given some of the finest long-term returns and is expected to perform likewise in future. To make an investment in this or any other scheme you can visit MySIPonline and can enjoy the hassle-free process.
No comments:
Post a Comment