ICICI Prudential Midcap Fund: Better downside protection

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 18.17%, the fund has underperformed both the benchamark index (19.47%) and the category average (19.44%).


Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 28 OCT 2004
Category: Equity
Type: Mid Cap
Average AUM: Rs 1,451.70 CR
Benchmark: Nifty Midcap 150 Total Return Index

WHAT IT COSTS
NAVs (As on 16 OCT 2018)
Growth Option: Rs 91
Dividend Option: Rs 23
Minimum Investment: Rs 5,000
Minimum SIP Amount: Rs 1,000
Expense ratio( As on 31 AUG 2018) (%): 2.36
Exit load: 1% for redemption within 365 days

FUND MANAGERS
Mrinal Singh / Mittul Kalawadia
Tenure: 7 Years and 4 Months / 2 Years and 5 Months
Education: B.E, PGDM / MCOM, CA

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

The fund’s risk-return profile is slightly better than the category average.

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

Should You Buy?
This fund has realigned its portfolio significantly to fit the revised criteria for mid-cap funds. It has cut its earlier sizeable presence in small-caps sharply, while mid-cap exposure has been beefed up. However, it still retains higher exposure to smallcaps relative to peers. It has also adopted a different benchmark index to better reflect the target universe.

The fund remains focused on growth business that also have room for value to unfold. It emphasises on management integrity. The fund manager takes healthy active positions in top bets and is comfortable placing bets outside the index. While the fund has underperformed in recent years, it provided better downside protection during the recent market fall—this may prove critical over the next few years.