The equity market has been on a roller coaster ride, with the Sensex touching levels of around 21000 in January 2008, then plunging as low as 8000, and bouncing back to around 21000 in 2010, only to come down to levels of 16000 thereafter. As is evident, the market has been very volatile for the last few years. At times like these, a fund scheme like the ICICI Prudential Dynamic Plan, which is a Flexi-Cap opportunities fund, is the ideal choice for investors to be able to make the most of the dynamic changes in the market. It has the ability to capture the upside opportunities in the market by adopting a bottom-up fundamental analysis strategy across market capitalisations on a diversified basis, to identify and pick its stocks. On the flip side, it can also adopt an active cash strategy and uses derivatives, which helps mitigate downside risks, as and when the market gets overvalued.
Launched in 2002, the fund has generated CAGR returns of 27.82%. YTD as well as in the last 5 calendar years, the fund has outperformed both its benchmark as well as its category average 5 out of 6 times. The fund underperformed in 2007 on account of cash calls taken, whereas equity market rose sharply that year.
As of October 2011, the fund is fairly diversified, with around 75-80 stocks in its portfolio. It has around 14% held in cash. The fund is less volatile as compared to its peers, and offers better risk-adjusted returns, as measured by the Sharpe Ratio.
The ICICI Prudential Dynamic Plan is positioned to protect against any significant downside. However, in substantial bull markets, the fund could underperform its peers. The fund is ideal for investors with a conservative or moderate risk appetite, with a long-term investment horizon in the equity market.
| Fact Sheet |
| AMC | ICICI Prudential Asset Management Company Ltd |
| Structure | Equity Diversified |
| Investment Option | Growth & Dividend |
| Exit load | 1% for redemption within 365 days of allotment |
| Corpus | Rs 4130.18 crore (30/09/11) |
| 52 Weeks High/ Low | Rs 111.90 (03/01/11) / Rs 91.63 (05/10/11) |
| Minimum Investment | Rs 5000 |
| Benchmark | S&P CNX Nifty |
| Launch Date | October 2002 |
| Fund Manager/s | Sanjay Parekh, Rajat Chandak |
| Trailing returns (%) as on 25/11/2011 |
| Time Frames | Fund | Category |
| Year-to-Date | -16.9 | -20.9 |
| 1-Year | -13.77 | -18.16 |
| 3-Year | 27.55 | 22.07 |
| 5-Year | 8.41 | 4.47 |
| Returns up to 1 year are absolute and over 1 year are annualized |
| Top Five Holdings (% of Net Asset as on 31/10/11) |
| Reliance Industries | 10.33% |
| Infosys Technologies | 5.65% |
| ICICI Bank | 4.99% |
| Sterlite Industries | 4.39% |
| Bharti Airtel | 4.37% |
| Total of Ten Holdings | 43.92% |