ICICI Prudential Bluechip Fund Completes 15 Years

One of the largest actively managed large-cap fund – ICICI Prudential Bluechip Fund – with assets of Rs 37,016 crore (May 31, 2023), has completed 15 years of good investment experience. Launched amidst the global financial crisis in May 2008, the scheme has manoeuvred through market turbulences such as trade wars, taper tantrums, geopolitical tensions and interest rate cycles.

Large Cap stocks are less volatile compared to midcap and smallcap stocks. As on May 31, 2023, the scheme has outperformed the Nifty 100 TRI across all timeframes i.e – since inception, 1 year, 3 years, 5 years, 10 years and 15 years. 

Wealth Creation Journey of the Scheme- Lumpsum
Since its inception on May 23, 2008, the scheme has delivered a compounded annual growth rate (CAGR) of 13.98%. For perspective, this return means that Rs. 10 lakh invested during the NFO of scheme have grown to Rs. 71.5 lakh currently. In the same year an investment in the benchmark of the scheme would have fetched the investor Rs. 46.8 lakh.  Past performance of the scheme may or may not sustain in the future. (Refer below for detailed performance)

The large-cap category is generally less volatile than most other equity scheme categories. Most retail investors hold large caps as part of their core investment portfolio. Given that SIPs (systematic investment plans) are the preferred route to investing in such funds, it is interesting to note that ICICI Prudential Bluechip Fund has scored on this aspect, too.

Wealth Creation Journey of the Scheme- SIP Data as on May 31, 2023. Past performance may or may not be sustained in future. Inception date is May 23,2008. *Scheme benchmark is Nifty 100 TRI. The performance of the scheme is benchmarked to the Total Return variant of the Index. Returns are in CAGR terms for Growth Option. The returns are calculated by XIRR approach assuming investment of Rs 10000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions. The investment value shown above would have varied based on the amount of SIP, the investment period of the investors and continuity of SIP. The returns shown are not indicating/assuring in any manner and is not an indicator of future returns. ICICI Prudential Mutual Fund does not provide guaranteed returns. Past performance may or may not sustain in the future.

A SIP in the scheme since its inception would have delivered a CAGR of 14% to investors. If Rs 10,000 were invested in the scheme every month for 15 years, an investment of Rs. 18 lakhs would have grown to Rs. 56.4 lakhs. ~69% of the time, since inception, the scheme’s five-year returns have been more than 12%. In case of its benchmark, the figure stands at 60.7% of the time. (Data Source: MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd.)

Anish Tawakley, fund manager of the Scheme and Deputy CIO-Equity and Head of Research, ICICI Prudential Asset Management Company Limited notes, "Over the years, picking high conviction stocks with buy and hold approach in large-cap companies with proven track record, quality management, good growth potential has worked well for the scheme." As compared to the benchmark, currently, the portfolio is overweight in auto, industrial products & capital goods and telecom*.

By building a portfolio that holds stocks and sectors with very different weightages from its benchmark, the scheme has demonstrated that with active management, one can aim to defy the odds and endeavour to deliver alpha** in the largecap category. 

Disclaimer
Notes:

1.  Different plans shall have different expense structure. The performance details provided herein are of ICICI Prudential Bluechip Fund.

2.  The scheme is currently managed by Anish Tawakley and Vaibhav Dusad. Mr. Anish Tawakley has been managing this fund since Sep 2018. Total Schemes managed by the Fund Manager is 5 (4 are jointly managed). 

Vaibhav Dusad has been managing this fund since Jan 2021. Total Schemes managed by the Fund Manager is 3 (2 are jointly managed). Refer annexure from page no. 109 

(https://www.icicipruamc.com/docs/default-source/2/annexure49c91c97690a4a629a0595900058338b.pdf ) for performance of other schemes currently managed by Anish Tawakley and Vaibhav Dusad.

3. Date of inception:23-May-08.

4. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.

5. Load is not considered for computation of returns.

6. In case, the start/end date of the concerned period is a non-business date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period

7. The performance of the scheme is benchmarked to the Total Return variant of the Index. The benchmark of the scheme has been revised from Nifty 50 TRI to Nifty 100 TRI w.e.f. May 28, 2018.

8. Rajat Chandak has ceased to be a fund manager of this scheme with effect from March 1, 2022.

* The sector/stocks mentioned above do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sectors/stocks.

** Alpha is defined as the difference between the scheme performance and index performance for the respective period. Past performance may or may not be sustained in the future.

Riskometer
ICICI Prudential Bluechip Fund - An open ended equity scheme predominantly investing in large cap stocks

Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis. The above risk-o-meters are as on April 30, 2023. Please refer to https://www.icicipruamc.com/news-and-updates/all-news for more details.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.