Why ICICI Prudential Value Discovery is the best scheme in 2020

ICICI Prudential Mutual Fund managed assets worth Rs.3, 68,237 crores and was set up on 25 August 1993. It is the current offering of mutual fund schemes includes 85 equity, 297 debts, and 63 balanced funds. The company is led by its CEO Nimesh Shah.

The ICICI Prudential Value Discovery Fund is one of a handful of funds that follow value-based investment approaches. The fund was launched on 16 August 2004 and had the highest AUM of Rs 16,185 crore in the category.

As per the SEBI mandate, value funds should follow a value investment strategy and invest a minimum of 65% of the total assets in equity and equity-related instruments.

The fund is managed by Mr. Mrinal Singh, who has been involved in the scheme since February 2011, while Ms. Priyanka Khandelwal oversees the fund’s foreign investment.

The objective of ICICI Prudential Value Discovery Fund

The investment goal of the scheme is primarily to generate returns by investing in a well-diversified stock portfolio with dividend income and appreciation of capital.

We can understand with an example:

If you had invested Rs 10,000 in ICICI Prudential Interest Discovery Fund on 06 August 2013, it would have been Rs 15,476 by 06 August 2018. This represents an annual growth rate of 9.13%. It will now have Rs 15,356 (8.96 percent CAGR) as a comparison to a simultaneous investment of Rs 10,000 in its benchmark-S&P BSE 500-TRI index.

ICICI Prudential Value Discovery Direct-Growth performance in the last years is -7.25%, 3.87% over the previous three years, and 136.97% since the launch of the scheme. The amount of SIP to invest in this scheme is around ₹100.

To cater to the needs of investors, the ICICI prudential value discovery fund scheme offers an opportunity to invest in leading companies at a discounted rate. The fund promotes the principle of value investing and recognizes their fair value over the long term and buys stocks with high growth potential at lower prices.

The ICICI Value Discovery Growth Fund aims to find the most favorable stocks that are priced below their history and capable of generate higher yields. With this, ICICI Prudential Value Discovery Fund invests in these securities and creates a portfolio that is weighted.

The scheme seeks to provide long-term capital appreciation by investing predominantly in a well-diversified portfolio of select companies based on value-investment criteria.

The scheme proposes to carefully deposit a portfolio of stocks, which are available at a discount to its intrinsic value through a process of ‘discovery.’ The discovery process involves identifying stocks that have attractive valuations about earnings or book value or current and future dividends and are available at a price that may be called bargaining. Conclusion: Compared to various strategies in its group, this ICICI Pru Value Discovery Fund growth scheme value is significantly higher. The growth plan has been prepared by the fund managers of ICICI MF, who are truly visible through their track record.