This fund has been a consistent outperformer in large-cap category across most periods

Launched in May 2008, ICICI Prudential Bluechip Fund, is a large-cap fund, that aims to provide long-term capital appreciation and income distribution from a portfolio predominantly invested in equity and equity-related securities of large cap companies. The fund was ranked Number 1 in the large-cap category in Crisil Mutual Fund Ranking for the quarter ended March 2018.

It has been managed by Sankaran Naren (experience - 26 years) and Rajat Chandak (experience - eight years) since July 2017. The fund’s assets under management (AUM) almost doubled from Rs 9,089 crore in May 2015 to Rs 17,142 crore in April 2018, backed by mark-to-market returns and fresh money inflow.

Trailing returns: In terms of trailing returns, the fund has consistently outperformed the category (represented by funds ranked in the large cap category in Crisil Mutual Fund Rank - March 2018) across all trailing periods. Compared with its benchmark (Nifty 100 TRI), the fund has outperformed over medium- to long-term trailing investment horizons of three, five, seven and ten years. It trailed marginally during the past one year and two years.

An investment of Rs 10,000 in the fund on May 23, 2008 (inception date of the fund) would have grown to Rs 40,540 (14.93% Compound Annual Growth Rate) on June 12, 2018 vis-à-vis the benchmark’s Rs 26,782 (10.29% CAGR) and the category’s Rs 27,638 (10.63% CAGR).

SIP returns: A monthly investment of Rs 10,000 via a systematic investment plan (SIP) for 10 years would have grown to Rs 27.24 lakh (XIRR 15.8%). A similar investment in the benchmark would have grown to Rs 24.5 lakh (XIRR 13.8%).

Risk-reward matrix: The fund delivered higher average daily returns over the past three years relative to the benchmark and peers coupled with lower volatility.

Portfolio analysis: During the past three years, the fund invested in 88 stocks - chiefly large caps (averaged 91.29% of the portfolio). The top five sectors constitute 60% of the fund’s equity portfolio as of April 2018. Banks have the highest allocation of 25.76% followed by software (9.84%), auto (9.18%), power (7.72%) and consumer non-durables (7.57%).

In three years, the banking sector had the highest average allocation of 27.38%. HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank were the consistently held stocks during this period. HDFC Bank and IndusInd Bank were the key contributors to the fund’s performance from the banking sector.

The software sector had average allocation of 11.39%. The fund consistently held four of the five software sector stocks it took exposure to during three years, with Infosys and HCL Technologies comprising major allocations in the sector. Infosys was the highest contributor to the fund’s performance among software stocks during this period.

Out of the 88 stocks the fund invested in during three years, it consistently held 20. Among the consistently held stocks, HDFC Bank, Bajaj Finserv, IndusInd Bank, Reliance Industries and Infosys were the biggest contributors.

(Source: DNA Money)