How is ICICI Value discovery for donig SIP for 5 years?

ICICI Prudential Value Discovery Fund is a multi-cap fund which has been not performing well for last few years and is not among the most popular multi cap fund in market today.

Multi-cap funds are diversified funds, which invest in stocks across market capitalization. That is, their portfolio comprises of large cap, mid-cap and small cap stocks. They are relatively less risky compared to a pure mid cap or a small cap fund and are suitable for not-so-aggressive investors.

Key points for ICICI Prudential Value Discovery Fund is:

• This fund has been rated as a 3-star fund by Groww and ranked 5 in multi cap fund category by Crisil.
• AUM of close to ₹17496 Cr.
• Launched in Aug 16, 2004 so performance can be ease to judge.
• Past 3 years return is 10.89% per annum.
• Has outperformed its benchmark BSE S&P 100 and NIFTY 50 for last 5y and 10y, but underperformed in last 1y and 3y.
• The top portfolio holdings of the fund include Sun Pharmaceuticals Industries Ltd, HDFC Bank Ltd., SBI, Mahindra & Mahindra Ltd., L&T, IOCL etc.
• The holdings are balanced across various sectors with maximum weightage given to financial services (19.5%).

It has performed really well before last few years, but ever since it crossed the AUM of ₹15,000cr the performance has been average. Usually, with large AUM the optimal allocation of funds is difficult. 

ICICI Prudential Value Discovery Fund is suitable for long term SIP but there are much better options available in market like:

• Motilal Oswal MOSt Focused Multicap 35 Fund
• Kotak Select Focus Fund
• Aditya Birla Sun Life Equity Fund

 Happy Investing!

ICICI Value Discovery Fund is a multicap fund and has consistently been giving good returns to the investors.

This fund is more than 10 years old and has been giving returns which is almost at par with its benchmark NIFTY 500. This fund is good for first time investors

Few key points for this fund are:

·     Risk involved in this fund is comparatively less as compared to the benchmark.

·     Its 5 year and 10 year return are higher than the benchmark.

·     Approx 90% of the investments are made in equities and the remaining in cash in order to meet the liquidity needs of the investors.

·     Investments are made in all segments with the highest allocation to Financial Services and IT.

·     Its 1 year and 3 year returns are lower than the benchmark.

·     This is an equity oriented fund, where more than 80 percent of the investment is made in large cap funds, which shows that the risk involved here is not high.

Few of the top holdings of this fund are:

·          Sun Pharmaceuticals Limited

·          Larsen and Turbo Limited

·          Wipro Limited

·          HDFC Bank Limited

·          NTPC Limited

This fund has invested in very reliable companies which have performed very well in the past years and are also expected to perform great in the upcoming years.

An investor looking to stay invested for 5 or more years can definitely opt for this fund, since the risk involved here is moderate because of the huge investments made in large cap stocks which basically include bluechip companies.

ICICI Value discovery is a Multi Cap fund with an AUM of around 17,000 cr.