ICICI Prudential Value Discovery Growth: flexi cap fund to watch out for

ICICI Prudential Value Discovery Growth fund is a flexi cap fund meaning the fund invests in large cap, mid-cap and small-cap stocks. The fund with an expense ratio of 2.34 per cent managed by Mrinal Singh is a 5 star rated fund by Morningstar under the Flexicap category.

The fund manager picks the stocks looking at the valuation and the exposure to large-cap stocks in the portfolio has increased significantly, which as of August 2016, stands at roughly 70%. Large cap stocks have corrected recently. 
The fund in the current calendar year is lagging the category average. But over the past 7 years, it has consistently beaten the category average with above average performances in 2009 and 2014. Its 3-, 5- and 10-year returns are market beating.

From the time the fund’s character underwent a change in investing style (June 2014 to August 2016), it has delivered an annualised return of 21%, thus outscoring its benchmark index (12%) and a typical peer (18%) from the flexicap category.

Flexicap is suggested for those investors who prefer to hold a single fund which invests in large-cap,mid-cap and small-cap stocks rather than holding three separate funds which focus on different capitalisation stocks.