If you have decided that you want to invest in equities, i.e., stocks of companies, and do not have an opinion on any sector or size of the companies to invest in, diversified multi-cap equity funds are the best way to start. These funds give fund managers greater choice and flexibility to invest and likely provide better returns.
Launched in August 2004, ICICI Prudential Value Discovery Fund has been a consistent performer in equity Funds. Had I invested money when the fund launched, I would have generated returns of more than 23% per annum. During the same period Nifty has generated return of 15% per annum.
How we arrived at this fund?
- Renowned Fund House – ICICI Prudential is largest fund house as we write this – check
- Long history record – Fund is operation since last 12 years – check
- Size of the fund – Fund is neither too small nor too big, 10k+ Crores – check
- Consistent performance – For any 5 year period, fund has performed better than others – check
- Risk-adjusted returns measured by Sharpe Ratio – Although not the best indicator of risk, Sharpe ratio is 1.48 higher than the benchmark (.68) – check
- Ranking – Rated 5 star by VRO, ranked 2 by CRISIL in diversified equity funds
- Fund Manager – Mrinal Singh manging Fund since 2008
- Fund philosophy – Buys value/ contrarian stocks
Who should buy ICICI Prudential Value Discovery Fund?
- Do not have opinion on size or sector of the company
- Ready to bear loss – equities are always risky
- Do not need money in next 5 years
- Want to build wealth in long term or save for long term goal like retirement of kids’s education
- Believe in india story and ready to invest in equities
- Dont want to get into active investing of buying and selling stocks and is ready to pay expense ratio to MF