Table of Contents
- Backed by largest private sector bank & Prudential Plc.
- One of the top performing midcap funds.
- Facilitates long-term wealth creation.
- Diversified Midcap investment.
One of the best mid cap schemes named ICICI Prudential MidCap Fund was launched on October 24th, 2018 by ICICI Pru Mutual Fund. Over years, due to its performance, it has managed to bring its name in the list of top performing funds in 2018 in the midcap category. Mid cap funds are those funds that invest in the top 101 to 250th companies in terms of full market capitalization.
Table of Content
- Who Should Invest in ICICI Prudential Midcap Fund?
- ICICI Prudential Mid Cap Fund Facts
- How Has ICICI Prudential Mid-Cap Fund Been Performing?
- Risk Analysis of ICICI Pru Midcap Fund (G)
- What Portfolio Allocation of ICICI Prudential Midcap Fund Indicates?
- SIP and Lumpsum Investment in ICICI Pru Mid Cap Growth Plan
- A Final Note
Midcap Funds are less risky compared to the small cap funds while more as compared to the large cap funds. They are the funds that invest in companies that are likely to become future big companies of India. They hold a considerate level of growth scope and can yield good returns with time.
Who Should Invest in ICICI Prudential Midcap Fund?
- Investors with moderately high risk-bearing appetite may invest in this scheme.
- This fund is basically a good option for those who are ready to make a long-term investment.
- Those who are looking for an opportunity to become a part of the midcap companies’ growth journey by investing in equity of diversified midcap companies, may invest in it.
ICICI Prudential Mid Cap Fund Facts
| Category | Mid Cap |
| Benchmark | Nifty Midcap 150 TRI |
| Launch Date | 10/28/2004 |
| Asset Size | Rs 1,535 crore (As on Jul 31, 2018) |
| Fund Managers | Mittul Kalawadia And Mrinal Singh |
| Expense Ratio | 2.41% (As on Jul 31, 2018) |
| Minimum Lumpsum | Rs 5,000 |
| Minimum SIP | Rs 1,000 |
| Exit Load | 1% for redemption within 365 days |
How Has ICICI Prudential Mid-Cap Fund Been Performing?
| Return Analysis | Trailing Returns | 3 - Year Rolling Returns with a gap of 6 months | |||||
|---|---|---|---|---|---|---|---|
| Particulars | Since Launch | Last 5 Years | Last 3 Years | Dec 2013 to Dec 2016 | Jun 2014 to Jun 2017 | Dec 2014 to Dec 2017 | May 2015 to May 2018 |
| Benchmark: S&P BSE MidCap | - | 26.08% | 13.68% | 23.36% | 16.19% | 21.18% | 14.74% |
| ICICI Prudential Midcap Fund | 18.00% | 28.68% | 9.32% | 32.29% | 18.24% | 17.61% | 13.17% |
| As on August 17, 2018 | |||||||
- This fund’s annual average return since launch has been 18%.
- Although it has generated less three-year returns compared to its benchmark S&P BSE MidCap, with time it has managed to do well.
- In five-year returns, it has beaten its benchmark by yielding 28.68% returns while that by its benchmark was 26.08%.
- It has managed to beat its benchmark in the rolling returns for a period of Dec 2013 to Dec 2016 and June 2014 to June 2017.
Risk Analysis of ICICI Pru Midcap Fund (G)
| Particulars | SD | Beta | Sharpe | Max Drawdown | Upside | Downside |
|---|---|---|---|---|---|---|
| Benchmark: S&P BSE MidCap | 16.46 | 1 | 0.65 | -14.55% | 100 | 100 |
| Category | 16.62 | 0.95 | 0.48 | -18.41% | 89 | 98 |
| ICICI Prudential Midcap Fund | 15.99 | 0.9 | 0.42 | -20.97% | 83 | 94 |
| As on July 31, 2018 | ||||||
- Standard Deviation and Beta of this scheme is 15.99% and 0.9% which is comparatively less than both its category’s and benchmark’s Std. Dev. and Beta which are 16.62%, 0.95 and 16.46%, 1, respectively. This means that it is less prone to fluctuations compared to the other two.
- The Sharpe ratio of this scheme is 0.42% which is less compared to its benchmark and category. This states that the scheme is likely to generate low returns with high risk.
- The maximum draw down, upside and downside ratios are all less than its category and benchmark.
What Portfolio Allocation of ICICI Prudential Midcap Fund Indicates?
- This scheme has invested majorly in the mid-cap stocks with up to 64% of the total stocks. Being a mid-cap scheme, this investment appears to be in accordance with the category requirement.
- It has also invested some assets in large-cap, small-cap, and a small portion in micro-cap equities as well.
| Sectors | Allocation | |
|---|---|---|
| Cyclical | ||
| Basic Material (Agriculture, Chemical, Metal & Mining, Steel, Building Materials) | 17.77% | |
| Consumer Cyclical (Auto related industries, Travel & Leisure, Marketing Cos, Apparel & Furniture Mfg Cos) | 23.10% | |
| Financial Services | 18.24% | |
| Real Estate | 0.00% | |
| Sensitive | ||
| Communication Services | 0.00% | |
| Energy | 0.87% | |
| Industrial | 18.22% | |
| Technology | 4.66% | |
| Defensive | ||
| Consumer Defensive | 4.14% | |
| Healthcare | 8.73% | |
| Utilities | 4.27% |
- It has majorly invested in the cyclical sectors with around 60% of the total assets which means that the return will be greatly affected by the market ups and downs.
- After cyclical sector, it has invested around 23% in sensitive and 14% in defensive sector.
- It has invested its assets majorly in the consumer cyclical sector companies while has not inclined its assets at all towards the real estate or communication services companies.
| Stock Name | Weightage (%) | Absolute Returns | Valuation | |||
|---|---|---|---|---|---|---|
| 1 Year | 5 Year | P/BV | PE | |||
| Exide Industries | 5.02 | 41.15% | 123.91% | 4.51 | 34.09 | |
| Tata Chemicals | 4.87 | 19.10% | 185.36% | 1.55 | 7.14 | |
| Indian Hotels | 4.82 | 8.18% | 212.94% | 3.57 | 106.44 | |
| Thomas Cook | 3.36 | 10.86% | 376.85% | 1.1 | 68.1 | |
| PI Industries | 3.35 | 2.23% | 488.39% | 5.61 | 30.82 | |
| Fortis Healthcare | 3.14 | 4.9% | 59.71% | 1.96 | - | |
| Federal Bank | 2.94 | -25.2% | 173.31% | 1.3 | 17.42 | |
| Engineers India | 2.86 | -20.2% | 90.88% | 3.42 | 20.24 | |
| AIA Engineering | 2.81 | 26.08% | 456% | 5.33 | 34.85 | |
| Gujarat Pipavav Port | 2.42 | -20.87% | 148.12% | 2.6 | 27.59 | |
| Gujarat State Petronet | 2.39 | 4.28% | 257.86% | 4.67 | 11.83 | |
| M&M Financial Services | 2.3 | 15.30% | 103.33% | 3.01 | 30.14 | |
| Return: As on August 17, 2018 | ||||||
- Talking about the returns provided by these stocks, it can be said that mostly all have yielded great five year returns.
- P/BV and PE are high which means that the stocks are sold in the market at a price higher than their book value.
- This scheme has invested approximately 35% in the top ten companies which show that the investment made is highly diversified.
SIP and Lumpsum Investment in ICICI Pru Mid Cap Fund
| 3-Years SIP Returns | ||||||
|---|---|---|---|---|---|---|
| Cumulative Investment | Growth Value | Absolute Returns | XIRR | |||
| ICICI Prudential Mid Cap Fund (G) | 36000 | 46230 | 28.42% | 16.91% | ||
| 3-Years Lumpsum Returns | ||||||
| Investment 3-Years ago | Growth Value | Absolute Returns | CAGR | |||
| ICICI Prudential Mid Cap Fund (G) | 100000 | 141826 | 41.83% | 12.33% | ||
| Returns: As on March 31, 2018 | ||||||
- SIP investment made for three years with monthly SIP of Rs. 1000 will lead to a maturity amount of Rs. 46,230.
- If an investor makes a lumpsum investment of Rs. 1,00,000, then at a rate of 41.83%, the maturity amount that he/she will receive will be Rs. 1,41,826.
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A Final Note
Investors should note that this scheme is for aggressive investors who are looking forward to earning capital growth through investment in mid-cap companies. However, this fund has a very diversified portfolio which is likely to minimize the risk to some extent.
If ICICI Prudential Mid Cap Fund suits your portfolio’s requirement and you are ready to invest in it, then you may do so via our platform. For any help or guidance that you may need, don’t hesitate in consulting us here at MySIPonline.
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Peer Comparison
| Fund | Launch | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio (%) | Assets (Cr.) |
|---|---|---|---|---|---|---|
| ICICI Prudential Mid Cap Fund (G) | 4-Oct | 7.5 | 9.82 | 29.2 | 2.41 | 1,535 |
| L&T Midcap Fund (G) | 4-Aug | 7.99 | 15.63 | 31.81 | 2.39 | 3,066 |
| DSP\A0BlackRock\A0Midcap\A0Fund\A0(G) | 6-Nov | 9.95 | 13.49 | 29.85 | 2.19 | 5,676 |
| Kotak\A0Emerging\A0Equity\A0Scheme\A0(G) | 7-Mar | 8.79 | 13.32 | 31.43 | 2.34 | 3,327 |
| Sundaram Mid Cap Fund (G) | 2-Jul | 5.49 | 11.48 | 28.88 | 2.12 | 6,138 |
To know more about the best mid cap schemes mentioned above, read 5 Best Mid Cap Funds to Invest in 2018
You may even go through the expert reviews on one of these top funds, through Fund Review: L&T Mid Cap Fund Growth
