Fund of Fortnight

This is our mutual fund recommendation. Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]


 

Reason for recommendation
The recent surge in equity market volatility, evident in the India VIX's climb from 10.14 on July 28, 2023, to 13.71 as of December 22, 2023, marks a substantial 35 per cent increase in less than four months. With the upcoming general elections expected to add further market unpredictability, a cautious investment strategy favouring Large-Cap exposure becomes imperative. In this context, we recommend considering the ICICI Prudential Bluechip Equity Fund. 

From a performance standpoint, this fund has consistently outshone its peers and benchmark in both short and longterm durations. Displaying a median 5-year rolling return of 14 per cent, the fund surpasses its peers' average of 9 per cent since inception. In terms of risk management, ICICI Prudential Bluechip Fund exhibits a lower standard deviation. Its risk-adjusted returns, measured by Sharpe and Sortino Ratios, are notably favourable, ranking among the highest in its category. 

The fund's portfolio consists of 73 stocks, with the top 10 holdings contributing 50.93 per cent of the assets, and the leading three sectors contributing 45.48 per cent. Despite a moderate concentration risk, with the highest allocation to any stock not exceeding 8.5 per cent, the fund maintains a well-balanced approach. In terms of sector allocation, ICICI Prudential Bluechip Fund is overweight in energy, automobile, technology, and construction, while being underweight in financial, healthcare, and consumer staples. Notable holdings include ICICI Bank, L&T, Reliance, Infosys, and Axis Bank.



 

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