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.



Reason for recommendation
In recent quarters, we've witnessed the spotlight in the investment landscape shifting towards broader market-based funds when it comes to generating returns. However, it's worth noting that actively managed Large-Cap funds are making a resurgence, and one noteworthy example is the ICICI Prudential Bluechip Fund. A closer examination of this mutual fund's performance reveals a consistent track record of delivering favourable returns compared to its category average across various timeframes. Over the past three months, the fund has yielded a commendable 7.99 per cent, surpassing the category average of 6.79 per cent. This outperformance extends to longer durations, with returns of 13.89 per cent over six months (compared to the category average of 13.28 per cent), 16.29 per cent over the past year (versus the category average of 13.12 per cent), and an impressive 23.82 per cent over three years (outperforming the category average of 21.42 per cent). Taking a deeper dive into the fund's sectoral holdings, it becomes evident that the portfolio is thoughtfully diversified. The fund has allocated a substantial portion to the financial sector, constituting 25.42 per cent of the portfolio.



Following closely are allocations to the energy sector (12.28 per cent), technology (9.54 per cent), and the automobile industry (9.04 per cent). This strategic diversification across sectors serves to mitigate risk and bolster the fund's resilience in the face of market fluctuations. Upon closer inspection of the fund's portfolio summary, it becomes evident that it maintains a well-rounded selection of stocks. With investments in 70 different stocks, the fund offers ample diversification to investors. The top 10 stocks account for 55.93 per cent of the portfolio, reflecting a wide spectrum of investments. The fund is under the expert management of Anish Tawakley, who adopts a well-diversified approach with lower turnover. For investors with a moderate risk tolerance and an investment horizon spanning 3-5 years, this fund presents an attractive opportunity for exposure.