If you are looking at SIP Investments, there are a few investments from ICICI Prudential Mutual Fund that have the potential to deliver. We have selected some of the best SIP Plans from ICICI Prudential. Take a look. We have kept in mind past track record and the portfolio of the fund. It is important to remember that the markets have hit life time peaks and hence you can systematically reduce your risk through SIPs.
ICICI Prudential Multi Asset Fund
Minimum investment required under this plan is Rs 1,000. This is a multicap fund with assets under management of almost Rs 11,300 crores.
The returns from the fund is 16.9 per cent on an average each year, in the last 5 years. The three year returns is more tempered at 13.5 per cent.
The net asset value under the growth plan is Rs 260.92, while under the dividend plan is Rs 21.98. The fund has a solid portfolio including the likes of NTPC, ICICI Bank, ITC and Infosys.
Since the fund is multi asset, it also has commercial paper, including those of Grasim, HDFC Bank and Axis Bank.
ICICI Prudential Bluechip Fund
This is a fund from the ICICI Prudential Mutual fund stable that has done well in the last many years. The fund has delivered returns of close to 13.6 per cent on an average each year, in the last three years. For a period of 5 years the fund has generated returns of 16.9 per cent.
The returns of the fund since launch in 2008, is close to 15 per cent on an average each year. The growth scheme has a net asset value of Rs 41.68, while the dividend plans has an NAV of Rs 23.08.
Remember that dividends are no longer tax free and the fund house has to pay a dividend distribution tax. There is also a capital gains tax that is now payable in the short term from profits made on equity mutual funds.
ICICI Prudential Value Discovery Fund
In this fund as well you can start with an initial amount of Rs 5,000 and then a small SIP of Rs 500 every month.
Again, there is nothing remarkably different with ICICI Prudential Value Discovery Fund as compared to the other funds, as the performance is more or less in line with it, though the fund has a different portfolio.
The good track record of this equity oriented fund, makes it among the best SIPs from ICICI Prudential Mutual Fund. The one year returns have been 8.92 per cent. The NAV under the growth plan is Rs 151.35, while the NAV under the dividend plan is Rs 31.33.
The fund has exposure to quality stocks like HDFC Bank, Sun Pharma, L&T, Wipro, Indian Oil and Mahindra and Mahindra. ICICI Prudential Value Discovery Fund is among the biggest schemes of ICICI Mutual Fund.
ICICI Prudential Multicap Fund
ICICI Prudential Multicap Fund is not a very large fund, as compared to some of the other ICICI Prudential schemes.
It is amongst the better multi-cap funds in the country. The fund has generated a good long term returns of more than 15.10 per cent on an average each year, since its launch in 1994.
The growth plan of the fund has a NAV of Rs 292.1, while the NAV under the dividend plan is Rs 23.88.
This fund has exposure to quality stocks like State Bank of India, Sun Pharma, Infosys, Engineers India, ITC etc. It seems a mixture of both large cap and small caps. The one year returns from the fund is as high as 15 per cent.
What is SIP?
SIP is nothing but systematic investment plan. It is an investment channel offered by mutual funds to investors, allowing them to invest using small amounts periodically instead of large amount. The frequency of this investment is usually weekly, monthly or quarterly. SIP is an approach towards investors and helps to improve the habit of saving and building wealth for the future.
It is a flexible and manageable investment plan. It is a smart and tension free mode for investing money in mutual funds. Allows the investor to spend a pre-determined amount of money at a regular interval, over a period.
SIP is a principal of regular investments and the amount of money is auto-debited from investor bank account and invested in a particular mutual fund scheme chosen by him.
The biggest advantage of SIP is that one investor need not time the market. In timing the market, one can lose money if markets fall. Investors can spend their money according to their convenience through post-dated cheques or ECS (auto debit) facility. If an investor wants to access the SIP, they need to fill up an application form and SIP necessary form on which they need to indicate their choice for the SIP date, i.e., on which they need to invest.
The main advantages of SIP are that investors can invest and take out the money anytime. There is no settled tenor for running SIP. Once the SIP tenor remains set, it can stop in between, or it can be maintained even after the tenor by arranging the request with respective mutual fund company. The investor can withdraw an amount partially or fully while SIP tenor during or done. The number may be increased or decreased.
The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article. The author and his family do not own any units in the above mentioned schemes.