ICICI Prudential Focused Equity Fund: Mutual funds are emerging as a preferred investment option for retail investors. In the category of equity mutual funds, there is increasing interest of investors regarding focused equity funds. It has performed well in this category of ICICI Prudential Focused Equity Fund. In the last one year, this fund has given investors a return of 50 per cent. ICICI Prudential Focused Fund is 15 per cent higher than other funds, as per the data till 8 March 2021, if the average returns of this category are seen. According to the SEBI scheme classification mandate, such funds can have a maximum of 30 stocks in their portfolio.
Why did you get good returns in the fund?
Under focused equity funds, investments are made in stocks which have the potential for strong growth. This has been observed in the case of ICICI Prudential Focused Equity Fund. The most important thing in this is the portfolio. The fund’s portfolio had such weighty names that it had the ability to deal with supply chain bottlenecks even in the coming quarters. One of the reasons for the fund’s better performance was that the rural economy was connected to it, which continued to benefit from the sustainable demand of the rural economy and this strategy worked better for the fund. With the market coming up from the low level of March, this fund gave excellent profits.
What is the chance next?
The ICICI Prudential Focused Equity Fund’s portfolio has been changed in view of the current market boom. It includes companies like Axis Bank, L&T, Tata Steel. Actually, this change in the portfolio by the fund manager has been done by looking at the current round sector-wise boom. In such a time, these sectors are likely to benefit from economic recovery. There are names in the portfolio that can benefit from the growth in credit growth and capex cycle, real estate etc.
This portfolio has excellent exposure to large financial companies, which can benefit from cycles of economic recovery (better debt growth and lower debt costs) and consolidation in PSUs. In short, the current portfolio is more inclined towards financials and consumer non durables. This is very different from its appearance a year ago, when the portfolio was tilted towards a protective sector like pharma and IT.
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How long do you stay in the fund?
The performance of ICICI Prudential Focused Equity Fund has been stable at all times. Apart from its one-year performance, the fund has given returns of 13 per cent and 15 per cent CAGR respectively for three or five years. Considering the nature of the portfolio, it is important that the investment is maintained for at least 3 to 5 years, which gives the investment research manager an opportunity to work fully.
(Source: Value Research)
(Disclaimer: Investment in mutual funds is subject to market risks. Business Khabar Digital does not recommend any type of investment. Investigate yourself and consult your financial advisor before making an investment decision.)
