ICICI Prudential MF launches Focussed Equity Fund

PFW Bureau / April 10

ICICI Prudential AMC has launched ICICI Prudential Focused Equity Fund. The fund is an open-ended equity scheme that aims to maximize long-term capital appreciation by investing in equity and equity related securities of about 20 companies.

The fund’s stock picking universe will comprise of top 200 companies in terms of market capitalization from the companies listed on the National Stock Exchange (NSE). The scheme seeks to capture the best opportunities that the market presents without any sector bias.

Commenting on the new fund, Nimesh Shah, managing director, ICICI Prudential Asset Management Company Ltd said in a statement, "Diversification in equity funds plays a key role in mitigating the risks. However, excessive diversification also runs the risk of diluting the potentially higher returns. It is thus critical that the number of stocks in a fund are restricted to achieve optimal diversity. ICICI Prudential Focused Equity Fund has been structured using this key insight to provide the investors with the possibility of high returns through limited risk. "

The scheme will focus on the following investment strategies –

Large Cap Orientation

The fund seeks to buy stocks of companies that it believes are

1. Profitable and leaders in the industry in which they operate
2. Have rapid growth potential over the next 3 to 5 years
3. Have superior proven management and solid balance sheet.

Focus:

1. Potential to generate Alpha from being over weight on certain high conviction picks
2. The portfolio could take exposure to any particular theme and has the flexibility to choose between stocks across themes / sectors / investment styles

 Bottom-up Stock Picking

1. Intrinsic value arrived at after intensive, internal research, reference to analyst reports and face-to-face meetings with management to analyze company strengths, business model, sustainable competitive advantages and ability to grow.