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 a new record and hence you can systematically reduce your risk through SIPs.
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 Bluechip Equity Fund, as the performance is more or less in line with it, though the fund has a different portfolio.
The good track record of funds, which makes it among the best SIPs from ICICI Prudential Mutual Fund. The one year returns have been 18 per cent. The NAV under the growth plan is Rs 142.77, while the NAV under the dividend plan is Rs 33.78.
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 15.33 per cent on an average each year, since its launch in 1994.
The growth plan of the fund has a NAV of Rs 274.2, while the NAV under the dividend plan is Rs 26.63.
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 12.4 per cent.
SIP plans for ICICI Prudential Multicap Fund
You can invest in the ICICI Prudential Multicap Fund with a small SIP of Rs 1,000 every month. Initially, you need an investment of Rs 5,000.
The only thing that one needs to note is that the expense ratio of the fund is rather high at 2.21 per cent.
There is also an exit load if you exit the fund before a period of 540 days. The exit load is 1 per cent and is higher than the cap of most funds of 365 days. The portfolio looks good for investors from a long term perspective.
ICICI Prudential Focused Bluechip Equity Fund
This is another 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 12 per cent on an average each year, in the last three years. For a period of 5 years the fund has generated returns of 17 per cent.
The returns of the fund since launch in 2008, is close to 16 per cent on an average each year. The growth scheme has a net asset value of Rs 40.17, while the dividend plans has an NAV of Rs 25.28.
Remember that dividends are tax free in the hands of the investors. So, opt for the dividend scheme in place of the growth scheme.
SIP for ICICI Prudential Focused Bluechip Equity Fund
There is an initial investment of Rs 5,000 that would be needed for the SIPs of the fund. Thereafter every month you can invest a small sum of Rs 500 each.
The portfolio of ICICI Prudential Focused Bluechip Equity Fund comprises some really blue chip stocks including the likes of HDFC Bank, ICICI Bank and Infosys. Invest in this fund if you have a long term perspective for investment.
You may also wait to invest in ICICI Prudential Focused Bluechip Equity Fund after a decline in the net asset value. The fund has huge assets under management of Rs 15,600 crores.
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.