ICICI Prudential Focused Bluechip Equity Fund : From an aggressive to a steady performer

3 Responses

  1. Arindam Mukherjee says:

    Dear Sir,

    Here I would like to share my experience. I have 54k to this fund – ICICI Blue Chip. I do lot of experiment through investment in MF. From my experience, I suggest to opt for Balanced Fund or Multicap Fund in place of PURE Large cap. If someone could take a risk, better to go for Mid cap like Mirae Asset Emerging, HDFC MidCap Opportunities and others. Small Cap is for strong heart or having adequate financial support. Currently L&T Emerging Business and Reliance Small cap are good when others like SBI Small&Mid Cap, DSPBR Micro have stopped taking fresh investment. The last but not least – Sectorial or thematic. It calls for patience. Currently my contra investment is in SBI Pharma and it shows negative return but still I keep on investing. To be honest, I have stopped investment in my large cap MF like ICICI Blue Chip, HSBC Equity, HDFC Equity, Quantum Long Term, HDFC TOP 200 etc but not redeemed yet.
    Hope moderator would share their thoughts on behalf of Large Cap fund where I miss the pivotal point in favor of Large Cap Fund.
    Thanks for a good write up and helping all readers get the essence of MF and befit of SIP.
    Wish you Good Luck Always !!
    With Regards,

    • Investment Mantra says:

      Dear Arindam

      Thank you for sharing your valuable feedback. As Indian retail investors have started channelising some proportion of their household savings to equity funds through SIP, large cap funds have an important role to play as for retail investors as for them large- cap signifies ‘Stability well established businesses’. So such funds will play a significant role to bring new retail investors back to equity markets besides of course balanced and equity diversified funds.
      Large-cap funds have heavy weights in their portfolio and with the economy still not out of the woods with manufacturing and other activities still slow, it will take time to show results. Investors need to have patience. However small and midcap funds performance shouldn’t be compared to large cap funds as both categories cater to a different league of investors.
      Moreover, midcap funds have rallied ahead which makes difference between two categories look more drastic. Since most of the large cap stocks are a reflection of the economy, they have largely remained subdued.
      For instance, I have one of my friends – the first-time investor started investing in mid and small cap funds last week after seeing last 3-5 year returns. In the last few days, a midcap index has fallen 3-4% in barely 2 days. He must have checked his portfolio nearly 15 times a day and he was clearly worried. So midcap funds suit a particular league of investors who have spent enough time in markets and can digest volatility.
      Balanced funds can be a good option to choose from but still over the long term once the economy improves large cap will be back in focus. 15-year average return of large-cap funds is 19.35% which is phenomenal. Having said that investors need to keep their return expectations realistic. If you see the performance of funds such as Franklin India Bluechip, the returns they have generated over 20 year period are phenomenal. We can’t count them out as you need to see risk-adjusted returns rather than only returns.

      Thank you,
      Salil

  1. June 13, 2017

    […] , a quality mid-cap fund in HDFC Mid-cap Opportunities Fund, a quality large cap equity fund in ICICI Prudential Focused Bluechip Equity Fund. This week we evaluate another star performer from small and mid cap space in Mirae Asset Emerging […]

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