ICICI Prudential Large & Mid Cap Fund: Returns have slipped in recent years

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 16.35%, the fund has lagged both the benchmark index (18.41%) and the category average (16.63%).
Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 9 July 1998
Category: Equity
Type: Large & Mid Cap
Average AUM: Rs 2,962.68 CR
Benchmark: Nifty Large Midcap 250 Total Return Index

WHAT IT COSTS
NAVs( As on 13 Nov 2018)
Growth option: Rs 309.95
Dividend option: Rs 16.86
Minimum investment: Rs 5,000
Minimum SIP Amount: Rs 100
Expense ratio(As on 30 Sep 2018)(%): 2.14
Exit load: 1% for redemption within 365 days

FUND MANAGER
Sankaran Naren
Tenure: 6 Years & 8 Months
Education: B.Tech, MBA

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

Wherever not specified, Data as on 30 sep 2018. Source: Value Research

Should You Buy?
The fund has undergone a complete transformation from its earlier large-cap centric avatar. It now takes significantly higher exposure to mid-caps, even if bias remains towards large caps. For its large cap portfolio, it takes a top-down approach comprising mostly of contrarian bets and active sector rotation while the mid cap portion is run with a bottom-up framework emphasizing higher growth potential in individual businesses.

The bias towards value is constant. The fund enjoyed a high degree of consistency in its previous avatar, but has seen its return profile suffer in recent years. Near term pain owing to its contrarian approach and recent realignment is expected. Its mid-cap foray now calls for a longer investing time horizon.