Sankaran Naren, co-fund manager, ICICI Prudential Equity & Debt Fund says, the fund largely invests in a blend of large and mid-cap stocks
What is your asset allocation policy / strategy?
ICICI Prudential Equity & Debt Fund invests a minimum of 65 per cent in equity which can go upto 80 per cent, depending on market conditions. Multiple market matrices are used to arrive on the market valuation parameter.
What is your approach to managing the equity portfolio of this fund?
A blend of top down and bottom up approach is followed in managing equity portfolio of the fund. The fund can invest across sectors, themes and hence is well diversified. The fund largely invests in a blend of large and mid-cap stocks, with good track record and long-term growth potential. The allocation between large and mid-caps is decided on a tactical basis rather than any predefined ratio.
What is your approach to managing the fixed income portfolio of this fund?
Fixed income portfolio is managed based on opportunities available in debt space be it accrual or duration.
How often do you re-balance your debt and equity allocation?
Re-balancing of the portfolio is largely dependent on the prevailing market conditions. As the equity market turns expensive, the allocation is reduced, while the debt component is increased and vice versa.
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