ICICI Prudential Multicap Fund: A sound flexi-cap offering

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.

ICICI Prudential Multicap Fund

How has the fund performed?
With a 10-year return of 12.66%, the fund mirrors the category ( average return: 12.68%) and has outperformed its benchmark (9.76%) by a good margin.



Basic facts
Date of launch: 1 Oct 1994
Category: Equity
Type: Multi Cap
Average AUM: Rs 1,625.62 cr
Benchmark: S&P BSE 200 Index

What it costs
NAVS*
Growth option: Rs 239.29 Dividend option: Rs 25.47
Minimum investment: Rs 5,000
Minimum SIP amount: Rs 1,000
Expense ratio^ (%): 2.53 Exit load: 1% for redemption within 540 days
*As on 5 Oct 2016
^As on 31 Mar 2016

Fund managers: Atul Patel/George Heber Joseph
Tenure: 1 month/9 months
Education: B.Com, CA, CWA/B.Com, BA, CA

Where does the fund invest?




Should you buy?
This fund has improved its return profile in recent years, consistently outperforming its category average. The flexicap mandate allows the fund to invest 40-60% in large-caps while the balance is held in mid- and small-caps. The fund managers prefer companies which are currently out of favour, owing to temporary blips, but where longevity of business model and presence of competitive advantages provides comfort.

Companies and sectors which provide a strong play on the demographic profile also tend to get their nod. The portfolio construction is benchmark agnostic and moderately diversified, and the managers takes larger positions in high conviction bets. The fund has a superior riskreward profile compared to many peers, making it a worthy flexi-cap bet.