Reaching New Heights: This blue chip large-cap fund completes 15 years

The scheme has delivered a CAGR return of 13.98 per cent. If an investment of Rs 10 lakh was made during the fund's New Fund Offering (NFO), it would have multiplied to Rs 71.5 lakh.

Today, ICICI Prudential Blue-chip Fund, one of the largest actively managed Large-Cap funds with assets of Rs 37016 crore (as on May 31, 2023), reached a significant milestone of 15 years of successful investment experience. Fund was launched on May 23, 2008. Despite being launched during the global financial crisis in May 2008, this fund has effectively navigated through various market challenges such as trade wars, taper tantrums, geopolitical tensions, and interest rate cycles to emerge as the winner.  

It's worth noting that large-cap stocks, where the fund primarily invests, generally exhibit lower volatility compared to midcap and Small-Cap stocks. As of May 31, 2023, the ICICI Prudential Blue-chip Fund has consistently outperformed the Nifty 100 TRI (Total Return Index) across multiple timeframes, including since its inception. 

When it comes to investing in mutual funds, investors have two options: they can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP). 

The scheme has achieved an impressive CAGR of 13.98 per cent since its inception. To put it into perspective, an investment of Rs 10 lakh on a lumpsum basis made during the scheme's New Fund Offering (NFO) would currently be valued at Rs 71.5 lakh. In comparison, investing the same amount in the scheme's benchmark during that year would have resulted in a return of Rs 46.8 lakh. Generally, large-cap funds are less volatile compared to other scheme schemes in Mid-Cap and small-cap schemes. Investors include large caps as a core part of their investment portfolios. 

Investors who opted for a SIP in the scheme since its inception would have enjoyed a CAGR return of 14 per cent. For instance, if Rs 10,000 were invested in the scheme every month for a span of 15 years, the total investment of Rs 18 lakh would have grown to Rs 56.4 lakh. Furthermore, it is worth noting that approximately 69 per cent of the time, since its inception, the scheme has delivered five-year returns exceeding 12 per cent. In comparison, the benchmark of the scheme achieved this level of performance around 60.7 per cent of the time. Notably, ICICI Prudential Blue-chip Fund has excelled in this aspect, particularly considering the popularity of systematic investment plans (SIPs) for investing in such funds. 

The above data clearly indicates that the scheme has consistently surpassed the returns of its benchmark across various timeframes. The current management team of the scheme consists of Anish Tawakley, Vaibhav Dusad, and Sharmita D’mello. With an expense ratio of 1.63 per cent as of April 30, 2023, the scheme boasts a lower average expense ratio compared to the same category, which stands at 2.09 per cent. 

Anish Tawakley, the Scheme's fund manager and Deputy CIO-Equity, as well as Head of Research at ICICI Prudential Asset Management Company Limited, highlights the successful investment strategy employed by the scheme. He emphasizes the selection of high-conviction stocks in established large-cap companies with a proven track record, quality management, and strong growth potential, adopting a buy-and-hold approach over the years. 

The scheme's portfolio comprises 69 stocks, with 79.09 per cent invested in Large Cap Investments, and 4.78 per cent and 0.33 per cent allocated to Mid Cap and Small Cap Investments, respectively. It maintains a diversified allocation across multiple sectors, including Banks, NBFCs, Oils, Construction, Information Technology, Automobiles, Cements, and others. Considering the scheme's consistent performance, Investors may find it worth considering as an investment option.