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ICICI Prudential Focused Equity Fund


The latest offering from the ICICI Prudential stable is an open-ended equity diversified fund - the ICICI Prudential Focused Equity Fund. This new fund will generate long term capital appreciation by investing a majority of its assets in equity and equity related instruments and the rest in debt securities and money market instruments.

The fund's investment strategy will be to invest in 20 large cap companies from the top 200 sticks listed on the NSE on the basis of market capitalization. If the total asset in this fund crosses Rs.1000 crore then more than top 20 large companies would added to the portfolio.

Performance of Fund Manager:
Mr. Anand Shah will manage the portfolio of the fund. With ICICI Prudential since 2007, earlier he has worked with a fund manager at Kotak Mahindra AMC from May 2000 to January 2007.

Performance of the AMC:
ICICI Prudential Mutual Fund is the second largest AMC in terms of asset under management (AUM). Its average AUM as on March 31, 2008 was Rs 52935 crore, which is second to Reliance AMC. Currently ICICI Prudential manages more than 160 funds of which 26 funds are equity funds and most of them are equity diversified funds (21). ICICI Prudential Mutual Fund contains four 5-star, eleven 4-star and 18 3-star rated funds.

Similar Funds:
There are quite a few focused yet actively managed equity funds Kotak-30, UTI-Leadership Equity and Sundram BNP Paribas Select Focus Fund.

Opinion:
The fund has a straight forward strategy to invest in the top 20 companies from the NSE index. The fund is likely to deliver returns and behave like a large-cap index like Sensex and Nifty. The fund might be a reasonable choice for its predictable strategy and relative safety of the mega-cap stocks. This fund could be a worthy consideration for NFO fans, seeking an opportunistic bet on the market turnaround which can especially benefit this fund.

Scheme Details:
Issue opening date : April 8, 2008
Issue closing date : May 7, 2008
Fund Category : Equity: Diversified
Fund Manager : Mr. Anand Shah
Type : Open Ended
Benchmark : S&P CNX Nifty.
Minimum investment : Regular Plan - Rs. 5000, Institutional Plan: Rs. 10 crore.

Load structure:
Regular Plan
Entry Load : 2.25% for investment of less than Rs 5 crore, > 5 Crore - NIL
Exit Load : Holding period for less than six months and amount less than Rs. 5 Crore then one percent,

Institutional Plan
No-load