Should I invest in ICICI Prudential Discovery? | Value Research Understand the difference between a balanced fund and mid & small cap scheme before you choose one to invest
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Should I invest in ICICI Prudential Discovery?

Understand the difference between a balanced fund and mid & small cap scheme before you choose one to invest

I am 35-years, and have invested ₹8 lakh in Tata Balanced Fund (growth option) through SIP and also through additional purchases. I have read and studied ICICI Prudential Value Discovery Fund and find it attractive to invest in it for a period of 10 to 15 years. Would it be better if I switch to ICICI Prudential Value Discovery Fund from Tata Balanced via Systematic Withdrawal Plan of ₹10,000 every month?
- Devashish Saraf

Tata Balanced Fund is a good bet for conservative investors, especially first-time investors, in the stock market. ICICI Prudential Value Discovery is a value fund (which Value Research currently classifies a mid and small cap fund) with a good track record. Before switching, you should ask whether you can stomach the volatility in a mid and small cap fund vs a relatively stable balanced fund like Tata Balanced Fund. For example, ICICI Prudential Value Discovery Fund was down by over 55 per cent during 2008, probably the worst year for investments in recent times. Can you deal with that kind of volatiliy? If the answer is yes, go ahead with your investments. A fund that is currently high on mid and small stocks could be volatile in the near to medium term, but it also has the potential to offer superior returns over a long period. For example, a five-year SIP of ₹10,000 started in July, 2010 in ICICI Prudential the scheme is currently worth ₹12, 22,192 whereas a similar SIP in Tata Balanced Fund is currently worth ₹10,53,354.


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