Turnaround in Fortunes

Icici Prudential Mutual Fund has made a remarkable turnaround in the past 3-5 years. There was a phase when it was a struggle to find a single 5-star rated equity scheme from this fund house. But the AMC now has set its house in order with a value-oriented and clearly-articulated approach to equity investments. The results are visible with several funds across categories on top and leaders in their categories, based on their risk-adjusted performance.

Promoted in 1993 by ICICI, the US-based investment bank JP Morgan acquired a stake in the company. In 1997, the joint venture partner JP Morgan was replaced by British insurance and pension major Prudential plc with the AMC being named Prudential ICICI with a (55:45) holding, which again underwent a change to be named ICICI Prudential to reflect the change in the shareholding pattern. This seems to be a rare AMC that has undergone a complete change in its approach after the 2008 financial meltdown and for the good. The fund house has transformed itself from a product and sales powerhouse to have a performance-linked funds’ line-up.

This article was originally published on December 03, 2012.