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Tuesday, February 21, 2012

Mutual Fund of the Month - ICICI Prudential Focused Bluechip Equity

Well Folks, this is the second time I am writing an article like this. Last year, we had taken a detailed look at HDFC Prudence Fund. I had initially planned to write about one fund every month, but unfortunately, I havent had the time to do so again, till now. Here we are and the Mutual Fund of this month is "ICICI Prudential Focused Bluechip Equity".

Before we begin: All the data outlined below is accurate as of Jan 31st 2012.

ICICI Prudential Focused Bluechip Equity Fund

Details of the fund - ICICI Prudential Focused Bluechip Equity

Below are the key details of the ICICI Prudential Focused Bluechip Equity Mutual Fund Plan.

Fund Name ICICI Prudential Focused Bluechip Equity
Asset Management Company ICICI Prudential Mutual Funds
Fund Type/Category Open-Ended/Equity Large Cap Fund
Scheme Options Dividend Plan & Growth Plan
Launch Date 07-May-2008
Minimum Investment Rs. 5000 for One time Investments (first time)
Rs. 500 for SIP (Monthly)
Fund Manager Manish Gunwani (Since Jan 2012)
Entry Load 0%
Exit Load 1% (If Redeemed within 1 year since purchase)
Assets Under Management Rs. 3532.16 Crores
Address of Fund House 3rd Floor, Hallmark Business Plaza,Sant Dyaneshwar Marg,Bandra (East), Mumbai 400051
Email Address enquiry@icicipruamc.com

Fund Objectives - ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity Fund, an open-ended equity scheme, aims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on certain high conviction stock picks.

Investment Pattern

This fund invests in about 20 equity and equity related securities, and seeks to generate long term capital appreciation. The portfolio is mandated to select stocks from among the Top 200 stocks in terms of market capitalization on the NSE. This fund adopts a bottom-up approach to Stock Selection and the fund manager has the flexibility to choose between stocks across all themes, sectors and investment styles.

The fund aims to have an equity exposure of over 90% with a small exposure to Debt instruments to meet liquidity and redemption requirements

About the Fund Manager

Mr. Manish Gunwani has been Managing this fund from Jan 2012. He has over 15 years of experience of which 8 years is in Equity research and 1.5 years is in fund management.

Asset Allocation % of ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity Fund is a Fund that invests a healthy portion of its assets in Debt and other Fixed Income Instruments. The Asset Allocation % on the various asset categories for this fund is as follows:

Equity - 94.09%
Index Futures & Options - 2.39%
Debt - 3.52%

Sector Weightage for ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity fund invests over 90% of its assets in Equities (shares) and has a diversified asset allocation spanning the various sectors of company's available. The Sector Weightage (%) for this fund is as follows:

Sector Name Weightage %
Banks23.33%
Software15.14%
Pharmaceuticals8.51%
Petroleum Products7.14%
Power6.54%
Oil6.4%
Automobiles5.69%
FMCG5.1%
Telecom4.81%
Non-Ferros Metals4.71%
Textiles2.77%
Ferrous Metals1.92%
Construction & Infra0.77%

Top Stocks in ICICI Prudential Focused Bluechip Equity Fund's Portfolio

ICICI Prudential Focused Bluechip Equity Fund invests in a number of large-cap and blue-chip company stocks. Some of the top stock holdings of this fund are as follows:

Stock Name Weightage (As a % of their Overall Assets)
Infosys8.49%
Reliance Industries7.14%
Cipla5.91%
HDFC Bank5.74%
Bajaj Auto5.69%
Wipro5.63%
Axis Bank5.24%
ITC5.1%
ICICI Bank4.91%
Bharti Airtel4.81%
Hindustan Zinc4.71%
Bank of Baroda4.37%
Cairn India3.3%
TATA Power3.29%
Power Grid Corpn3.25%
ONGC3.1%
Punjab National Bank2.94%
Grasim Industries2.77%
Cadila Healthcare2.6%
TATA Steel1.92%
HCL Technologies1.02%
Larsen & Toubro0.77%
SBI0.11%
Kotak Mahindra Bank0.01%

NAV Movement:

NAV Stands for Net Asset Value. You can learn more about how a Mutual Fund works and how the NAV is calculated by Clicking Here

ICICI Prudential Focused Bluechip Equity Fund - Dividend Scheme

1. NAV As on January 2009 - Rs. 7.29
2. NAV As on June 2009 - Rs. 10.820
3. NAV As on January 2010 - Rs. 13.670
4. NAV As on June 2010 - Rs. 13.780
5. NAV As on January 2011 - Rs. 17.370
6. NAV As on June 2011 - Rs. 15.620
7. NAV As on December 2011 - Rs. 14.54
8. NAV As on January 2012 - Rs. 13.850
9. NAV As on February 2012 - Rs. 15.270

ICICI Prudential Focused Bluechip Equity Fund - Growth Scheme

1. NAV As on January 2009 - Rs. 7.29
2. NAV As on June 2009 - Rs. 10.820
3. NAV As on January 2010 - Rs. 13.670
4. NAV As on June 2010 - Rs. 13.780
5. NAV As on January 2011 - Rs. 17.370
6. NAV As on June 2011 - Rs. 16.370
7. NAV As on December 2011 - Rs. 15.240
8. NAV As on January 2012 - Rs. 14.520
9. NAV As on February 2012 - Rs. 16.0

All NAV's As on the 1st of the Calendar Month.

Net Returns:

The ICICI Prudential Focused Bluechip Equity Fund has been one of the best performing Equity Mutual Funds in India over the past 3 years. The Net Returns of this fund over the past years is as follows:

Time Period Returns %
1 Month 12.4%
3 Months 11.7%
6 Months 13.3%
1 Year 7.9%
2 Years 13.1%
3 Years 34.6%
5 Years NA

A point to note here is that, even though the NAV Movement may seem higher on the Growth Scheme when compared to the Dividend Option. That is because, the Dividend Scheme pays a periodic dividend (Usually once ever year) and hence the net returns inclusive of dividends earned in the Dividend Scheme will be comparable to the Growth Scheme. Don't worry, the Dividend history is available in the next section.

Dividend History - ICICI Prudential Focused Bluechip Equity - Dividend Plan

Since, this is a comparatively new fund (Only started in 2008) it hasn't declared much dividends yet.
Dividend Date Dividend Amount (Per Unit Held)
25-Jan-2011 0.75

Sample Returns Comparison - ICICI Prudential Focused Bluechip Equity Dividend Plan & Growth Plan

Date of Investment: 01-Jan-2009
Amount Invested: Rs. 25,000 (Each in Dividend & Growth Plan)
No. of Units: 3429.355 (Growth) & 3429.355 (Dividend)
Current Value of Investments: Rs. 58,264.75 (Growth) and Rs. 55,589.85 (Dividend)

Dividend Earned in Dividend Scheme:

1. On 25-January-2011 @ Rs. 0.75 per unit = Rs. 2,572/-

Net Dividend Earned = Rs. 2,572/-

Net Value of Investments in Dividend Plan (Including Dividends) = Rs. 58,161.86/-

Though the Net value of Investments in the Dividend Plan is Rs. 2,674.90/- less than the Growth Plan, if you consider the fact that you you have earned a Dividend of Rs. 2,572/- in Jan of 2011, the net value of investments in both the dividend and growth plans have a difference of only Rs. 102.89/-. If we assume that you kept the dividend in your bank account (savings) which earns a 4% rate of returns you would have earned Rs. 102.88/- in the one year period starting January 2011 to January 2012.

Other Merits to this Fund:

CRISIL has ranked this fund as "Rank 1" which indicates that this is one of the best performing Mutual Fund Plans in India.

Important Disclaimer:

Past Performance May or May Not be Sustained in Future. The Fund House does not Guarantee any returns. As with all equity market related investments, the value of the investment will move in accordance with the stock market and may go up or down depending on the world economic situation. Investors are advised to exercise caution before investing in the above mentioned fund. The Author does not endorse or recommend this fund to investors. The purpose of this article is just a Fund Review and should not be treated as Investment Advise.

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