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Thursday, July 26, 2018

ICICI Prudential Value Discovery Fund

Best SIP Funds to Invest Online 


Most retail investors are increasingly thinking of playing it safe through value-investing because of high valuations. Such investors should focus on companies that show promise of growth, and at the same time, are attractive on relative valuation. Among large-cap mutual fund schemes, which not only look at companies from growth potential but also from the point of view of financial ratios such as price-to-book value and relative-market capitalisation, is ICICI Pru Value Discovery Fund.


The scheme has consistently followed the concept of valueinvesting and has rewarded investors by recording a commendable performance, especially in the long term. In the past five- and 10-year periods, the scheme has delivered 21% and 18% returns, while its category given 16% and 11% returns, respectively, during the same periods.


The scheme does not restrict itself to companies of a particular size. Mrinal Singh, the scheme's fund manager, is in constant search of stocks at attractive valuations. For the past year, largesized companies have been far more attractive than their midsized counterparts, and Singh has enhanced exposure to such large-sized companies. This ensures margin of safety, and also to a large extent, predictability of earnings in comparison with mid-sized companies. In the past six months, the fund manager has invested in companies which have beaten down and also fulfil the criteria of value investing. These are ITC, Power Grid Corporation and IOC.



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