ICICI Prudential Bluechip Mutual Fund: Outperforms Benchmark and Category Average in Long-Term

The ICICI Prudential Bluechip Mutual Fund stands out as a reliable choice for investors looking to tap into the potential of large-cap stocks. In this blog, we’ll delve into the fund’s key features, its portfolio strategy, and why it might be a suitable option for your long-term financial goals.

Understanding the ICICI Prudential Bluechip Mutual Fund

The ICICI Prudential Bluechip Mutual Fund is an open-ended equity scheme that predominantly invests in large-cap stocks. Since its inception on May 23, 2008, the fund has focused on maintaining a significant portion of its portfolio—at least 80%—in equity and equity-related instruments of large-cap companies. This approach ensures a lower risk profile while providing opportunities for consistent returns.

Key Features of the Fund

• Fund Managers: The fund is managed by experienced professionals, including Anish Tawakley, who has been with the fund since 2018, and Vaibhav Dusad, who joined in 2021. Their combined expertise spans several decades, contributing to the fund’s robust management strategy.
• Investment Options: The fund offers flexibility with options such as lump sum investments, Systematic Investment Plans (SIP), Systematic Withdrawal Plans (SWP), and Systematic Transfer Plans (STP). This variety allows investors to choose a plan that best suits their financial strategy.
• Exit Load: The fund applies an exit load of 1% if investments are redeemed within one year of allotment, making it more suitable for investors with a long-term horizon.

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Portfolio Strategy and Performance

The ICICI Prudential Bluechip Mutual Fund adopts a well-diversified approach by investing across all sectors within the large-cap universe. As of July 31, 2024, the fund’s assets under management (AUM) stood at Rs 62,717.11 crores, reflecting its substantial presence in the market.

• Sector Allocation: The fund holds a large-cap bias, with around 91% of its total assets invested in large-cap stocks. It has an overweight position in sectors like Auto, Industrial Products, Capital Goods, and selective service sectors such as Cement, Telecom, and Pharma & Healthcare Services.
• Top Holdings: The top holdings in the portfolio include industry giants like ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., and Infosys Ltd., which collectively represent a significant portion of the fund’s assets.

Why Consider ICICI Prudential Bluechip Mutual Fund?

Investors seeking to build long-term wealth through relatively stable investments will find the ICICI Prudential Bluechip Mutual Fund appealing for several reasons:

• Stability with Growth Potential: Large-cap stocks are typically less volatile than mid or small-cap stocks, providing a more stable investment while still offering growth potential.
• Diversification: The fund’s diversified portfolio across various sectors and themes minimizes the impact of market fluctuations on any single industry.
• Strong Track Record: The fund’s consistent performance and adherence to a well-defined investment strategy make it a reliable option for investors.

Performance of ICICI Prudential Bluechip Mutual Fund

In the last 10 years, the fund has delivered an annualized return of 16.04%, compared to the BSE 100 TRI’s 14.14% and the Equity: Large Cap category’s 13.18%

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.