For long-term retail investors, it makes sense to be with schemes with focus on large-sized companies that have shown relatively better resilience in their financial performance in the December 2017 quarter. One such scheme that has performed well in the past three-year and five-year periods with respect to its benchmark (Nifty 50) is ICICI Pru Focused Bluechip. The scheme invests close to 90% of its portfolio in large companies, while the remaining is invested in mid-sized companies. In the past three-year and five-year periods (annualised returns), the scheme has given 11% and 17% returns, while its benchmark, the Nifty 50, has given 7% and 12% returns during the same period. In the past six months, the scheme’s fund managers — S Naren and Rajat Chandak — have bought companies which represent a contrarian theme. The companies have a high earnings growth visibility in the next two to three years given their dominant market share, robust business model, good dividend-paying record and high cash flows from operations. These companies are Eicher Motors, HDFC, ONGC and Asian Paints.
