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 equity markets, in the present state, may face volatility. With valuations stretched and good news already baked in, unexpected data or news could trigger market swings. On the other hand, declining interest rates are a possibility. In this scenario, aggressive Hybrid Funds with a larger allocation to Large-Cap stocks could be a well-positioned choice. Hence, our selection for this issue is ICICI Prudential Equity and Debt Fund. This fund has consistently outperformed its category average across all timeframes, offering investors superior returns. Over the past year, it boasts a 29.07 per cent return compared to the category average of 23.60 per cent, a significant outperformance of 5.47 per cent. This trend continues across three, five and ten-year periods, demonstrating a well-established pattern of exceeding market expectations.



The rolling return analysis paints an even more compelling picture. The fund surpasses the category average across all timeframes, with a particularly impressive 29.62 per cent one-year return compared to the average of 22.85 per cent. This consistent outperformance across various market cycles underscores the fund’s adaptability and skilful management. The fund’s sector allocation reveals a focus on robust industries, with financials and energy representing a combined 31.88 per cent of the portfolio. This strategic positioning likely contributed to the fund’s resilience during market downturns and its ability to capture growth opportunities. Looking at the fund’s individual holdings, it exhibits concentration in leading blue-chip companies like NTPC, ICICI Bank and Bharti Airtel. Given its consistent outperformance and strategic allocation, this fund is suitable for a moderate risk-taking investor with investment horizon of more than one year.

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