Latest news with #RajeshMinocha
Time of India
3 days ago
- Business
- Time of India
New investors' dilemma: Is flexi cap fund alone sufficient to deploy Rs 10 lakh for meeting goals
Live Events A Reddit user recently sparked an engaging conversation in the mutual fund community, outlining their plan to begin investing with a Rs 10 lakh lump sum and monthly SIPs of Rs 50,000–Rs 80, a long-term horizon of 10 years and a high risk tolerance, the investor questioned the need for multiple fund types, wondering why a single flexi-cap mutual fund wouldn't suffice for Indian equity reached out to an expert to understand whether only a flexi cap mutual fund is enough or not for a portfolio and why do investors need other funds as well in their funds are designed to offer broad market exposure, giving the fund manager the discretion to shift between large, mid, and small caps as market conditions evolve. 'This flexibility makes them a suitable base for most portfolios. However, the drawbacks in relying exclusively on flexi-cap holdings are manager bias and potential for alpha,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial adds that one of the main drawbacks is the potential manager bias, where fund managers often allocate a large portion of the portfolio to large-cap stocks in order to minimize volatility which can lead to underexposure in high-growth mid and small-cap segments, especially during market phases where these segments if the time horizon is long (say 10+ years), making dedicated investments in mid and small-cap funds through SIPs can generate better returns if the investor can bear the higher volatility and asset allocation discipline is very important, Minocha said and also recommended that one should never go overboard on risky categories, so that some allocation lands into stable options such as large cap or flexi cap, which can be conveniently redeemed in emergencies without much the stock prices running high, investors are staying away from the market and looking for investment options where they can make investments and whether they should go for lumpsum or SIP investments in the volatile this concern of many investors and the reddit user having a lumpsum amount to deploy and further to start SIPs, Minocha recommends that putting the lump sum of Rs 10 lakh into the market all at once is not a good idea and should be staggered even for the long-term investor as this protects an investor from short-term volatility in the market and allows for averaging out the purchase further adds that in practice, one may park the lumpsum in a liquid or ultra-short duration debt fund while using a Systematic Transfer Plan (STP) to invest in equity mutual funds automatically over the next 6-10 months, balancing the risks of timing the market and capital deployment.'For the SIP portion, a diversified approach can mean balancing growth and risk. The core holding would be a flexi-cap, alongside a mid-cap fund for extra long-term growth potential. To a small degree, small-cap can be employed for alpha generation,' said should always make an investment decision based on investment horizon, risk appetite, and goals : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
7 days ago
- Business
- Time of India
Nifty still below peak, but why are these mutual funds at record-high NAVs?
Despite benchmark indices Nifty 50 and BSE Sensex falling nearly 5% from their 52-week highs, several hybrid mutual funds have hit their own 52-week high NAVs. Mutual fund experts attribute this outperformance to two key factors: diversification across multiple asset classes and the relatively lower volatility of hybrid funds. 'The funds in the category of balanced advantage, dynamic asset, equity savings, and aggressive hybrid would have part of their portfolio in debt instruments, which provide stable returns and cushion the downside in a market downturn. When markets become volatile, as we are currently witnessing due to geopolitical and global financial headwinds, investors start to favour these categories as they are relatively less volatile than the Nifty and Sensex,' said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors , a wealth management firm in Mumbai. Also Read | Explained: Why Alpha and Beta matter in mutual fund investing Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior : classement des meilleures mutuelles 2025 (dès 11,19€/mois) Meilleurtaux Undo 'This brings into sharp focus the importance of active stock-picking instead of just relying on the index for investment processes,' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. An analysis by ETMutualFunds showed that many funds from arbitrage, aggressive hybrid, equity savings, balanced advantage, and dynamic asset allocation fund categories have recently hit their 52-week high NAVs, and some funds are behind by less than 1% from their 52-week high NAV Live Events A further analysis of these categories showed that there were around 66 schemes of which only one was large cap fund which has been in the market for nearly 1.29 years so it hit its 52-week high level. Aditya Birla SL Balanced Advantage Fund, which was at its 52-week high level on May 16 with a NAV of Rs 105.3300, is now trading at Rs 105.1500 down by 0.17% from the 52-week high NAV. Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC, said that asset allocation is about having a disciplined framework to book profits when everything seems to be going great for an asset class and to increase allocation when the margin of safety improves. 'ABSL BAF has navigated the last 6 months with agility and discipline- from 38% in mid-October 2024 to directional equity to around 70% by mid-March 2025, a period where pessimism was on the rise and conversely margin of safety improved. It is this dynamic asset allocation that helps protect the downside while participating in the eventual upside of markets,' he added. The funds that have reached their 52-week high level were on May 15, May 16, May 19, May 21, and May 23. Analysis of daily data of the benchmark indices showed that Nifty and Sensex went up on May 15, May 21, and May 23, whereas they dropped marginally on May 16. Some funds reached their 52-week high level when Nifty and Sensex hit their 52-week high level. Also Read | International mutual funds rally up to 12% in one month. Time to go global? If you're considering shifting your investments into these high-performing funds, Minocha cautions against chasing trends, noting that today's top performers could underperform tomorrow. He further recommends that investors should focus on those assets which are most appropriate for allocation given their objectives, risk appetites, and investment horizons and one should always go with an investment approach based on a goal-oriented perspective over the long term, which is far more beneficial than reacting to short-term returns. To this Dhawan adds in the current market scenario, where there are near to medium-term uncertainties regarding global trade policies and geopolitical tensions, volatility and the probability of a downturn in the equity market rise and these funds can be ideal for such an environment, and they are often recommended to investors who would have a moderate to low risk tolerance level. 'The primary objective of these categories is to provide a stable return by combining equity and debt together in different proportions. Arbitrage funds can be used for short-term investment purposes for high liquidity and emergency cash requirements. They can also be used to park money until there is a better investment opportunity to invest elsewhere,' he added. Investing in mutual funds near their 52-week highs carries risks such as limited upside potential, overvaluation, and increased chances of a market correction. These funds may reflect temporary performance driven by recent trends, leading to recency bias and unrealistic expectations. Commenting on the risk associated with investing in mutual funds that are near to their 52-week high level that one should be aware of, Dhawan mentions that investing in mutual funds that are near their 52-week high can present certain risks such as increased valuations and higher potential correction, active management risk, and market risk. Also Read | 10 equity mutual funds with NAVs above Rs 1,000 offer CAGR up to 24% since their inception 'After a sharp outperformance, there is always a probability of a market correction or a 'profit-booking' event, which can lead to drawdown or consolidation in the equity market. Since many of these funds have some exposure to equity, they could also correct. Additionally, past performance doesn't guarantee future results, and good fund managers can navigate through different market conditions, but their strategy, which drove the fund to a 52-week high, may not work going ahead,' he added. And lastly he adds that regardless of whether a fund is at its 52-week high or low, it's always subject to general market risk and factors like economic conditions, interest rate changes, geopolitical tensions, and overall market sentiment can impact the fund's performance. On the other hand, Minocha is of the opinion that 52-week highs should not be considered red flags to delay entry into a fund and as markets operate in cycles, these dynamics change with strategy, consistency, or one's financial goals. Investors need to understand the philosophy and the investment approach of a particular fund and see if it is aligned with their own thought process and then select investment categories and fund houses. One should always remember that equity funds suit long-term investors, while debt or hybrid funds are the alternatives for the shorter end, said Minocha. One should always choose a scheme based on risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
7 days ago
- Business
- Economic Times
Nifty still below peak, but why are these mutual funds at record-high NAVs?
Investors should align a fund's philosophy and approach with their own goals before selecting categories and fund houses. Despite benchmark indices Nifty 50 and BSE Sensex falling nearly 5% from their 52-week highs, several hybrid mutual funds have hit their own 52-week high NAVs. Mutual fund experts attribute this outperformance to two key factors: diversification across multiple asset classes and the relatively lower volatility of hybrid funds. 'The funds in the category of balanced advantage, dynamic asset, equity savings, and aggressive hybrid would have part of their portfolio in debt instruments, which provide stable returns and cushion the downside in a market downturn. When markets become volatile, as we are currently witnessing due to geopolitical and global financial headwinds, investors start to favour these categories as they are relatively less volatile than the Nifty and Sensex,' said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai. Also Read | Explained: Why Alpha and Beta matter in mutual fund investing 'This brings into sharp focus the importance of active stock-picking instead of just relying on the index for investment processes,' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial analysis by ETMutualFunds showed that many funds from arbitrage, aggressive hybrid, equity savings, balanced advantage, and dynamic asset allocation fund categories have recently hit their 52-week high NAVs, and some funds are behind by less than 1% from their 52-week high NAV A further analysis of these categories showed that there were around 66 schemes of which only one was large cap fund which has been in the market for nearly 1.29 years so it hit its 52-week high Birla SL Balanced Advantage Fund, which was at its 52-week high level on May 16 with a NAV of Rs 105.3300, is now trading at Rs 105.1500 down by 0.17% from the 52-week high NAV. Harish Krishnan, Co-CIO and Head Equity, Aditya Birla Sun Life AMC, said that asset allocation is about having a disciplined framework to book profits when everything seems to be going great for an asset class and to increase allocation when the margin of safety improves. 'ABSL BAF has navigated the last 6 months with agility and discipline- from 38% in mid-October 2024 to directional equity to around 70% by mid-March 2025, a period where pessimism was on the rise and conversely margin of safety improved. It is this dynamic asset allocation that helps protect the downside while participating in the eventual upside of markets,' he funds that have reached their 52-week high level were on May 15, May 16, May 19, May 21, and May 23. Analysis of daily data of the benchmark indices showed that Nifty and Sensex went up on May 15, May 21, and May 23, whereas they dropped marginally on May 16. Some funds reached their 52-week high level when Nifty and Sensex hit their 52-week high level. Also Read | International mutual funds rally up to 12% in one month. Time to go global? If you're considering shifting your investments into these high-performing funds, Minocha cautions against chasing trends, noting that today's top performers could underperform further recommends that investors should focus on those assets which are most appropriate for allocation given their objectives, risk appetites, and investment horizons and one should always go with an investment approach based on a goal-oriented perspective over the long term, which is far more beneficial than reacting to short-term this Dhawan adds in the current market scenario, where there are near to medium-term uncertainties regarding global trade policies and geopolitical tensions, volatility and the probability of a downturn in the equity market rise and these funds can be ideal for such an environment, and they are often recommended to investors who would have a moderate to low risk tolerance level.'The primary objective of these categories is to provide a stable return by combining equity and debt together in different proportions. Arbitrage funds can be used for short-term investment purposes for high liquidity and emergency cash requirements. They can also be used to park money until there is a better investment opportunity to invest elsewhere,' he added. Investing in mutual funds near their 52-week highs carries risks such as limited upside potential, overvaluation, and increased chances of a market correction. These funds may reflect temporary performance driven by recent trends, leading to recency bias and unrealistic expectations. Commenting on the risk associated with investing in mutual funds that are near to their 52-week high level that one should be aware of, Dhawan mentions that investing in mutual funds that are near their 52-week high can present certain risks such as increased valuations and higher potential correction, active management risk, and market risk. Also Read | 10 equity mutual funds with NAVs above Rs 1,000 offer CAGR up to 24% since their inception 'After a sharp outperformance, there is always a probability of a market correction or a 'profit-booking' event, which can lead to drawdown or consolidation in the equity market. Since many of these funds have some exposure to equity, they could also correct. Additionally, past performance doesn't guarantee future results, and good fund managers can navigate through different market conditions, but their strategy, which drove the fund to a 52-week high, may not work going ahead,' he added. And lastly he adds that regardless of whether a fund is at its 52-week high or low, it's always subject to general market risk and factors like economic conditions, interest rate changes, geopolitical tensions, and overall market sentiment can impact the fund's the other hand, Minocha is of the opinion that 52-week highs should not be considered red flags to delay entry into a fund and as markets operate in cycles, these dynamics change with strategy, consistency, or one's financial goals. Investors need to understand the philosophy and the investment approach of a particular fund and see if it is aligned with their own thought process and then select investment categories and fund houses. One should always remember that equity funds suit long-term investors, while debt or hybrid funds are the alternatives for the shorter end, said should always choose a scheme based on risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
22-05-2025
- Business
- Time of India
MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market?
Live Events Fund manager comment on performance Experts take on performance With the market being volatile and experts are recommending large cap funds for investment of which one fund is ICICI Prudential Bluechip Fund . The fund is the largest fund in the category and had an AUM of Rs 68,033 crore as on April 30, on May 23, 2008, the large cap fund is given five star rating by ValueResearch and on trailing returns, the scheme has outperformed its benchmark and category average in the last six months, nine months, one-,three-,five years. On the other hand, it has outperformed against its benchmark and underperformed the category average in the last three large cap fund offered 0.66% return in the last nine months against a loss of 1.61% by the benchmark (NIFTY 100 - TRI) and a loss of 2.02% as the category average. In the last one year, it offered 10.38% against 8.51% by the benchmark and 8.04% as the category the last three years, the scheme gave 20.74% compared to 16.53% by the benchmark and 17.25% as the category average. The scheme in the last five years offered 26.07% against 23.56% by the benchmark and 22.40% as the category the basis of daily rolling return in the last five years, the scheme has offered 14.55% return and based on the same parameter, in the last three years, the scheme gave 19.47% return.'The success of ICICI Prudential Bluechip Fund can be attributed to the disciplined approach we follow in portfolio construction. Our primary focus is on avoiding significant mistakes—specifically, steering clear of stocks that could land in the bottom third of the performance curve,' commented Anish Tawakley , Co-Chief Investment Officer – Equity, ICICI Prudential AMC'We adopt a barbell strategy for stock selection. On one end, we invest in value opportunities—companies that may be under near-term pressure but offer meaningful potential for mean reversion. On the other end, we back businesses with strong growth prospects and robust fundamentals. This balanced approach helps us build a resilient portfolio that can deliver consistent, long-term performance across market cycles,' he added,An expert believes that since its inception in 1993, ICICI Prudential Bluechip Fund has had a track record of strong performance and being an actively managed large-cap category fund, it has a higher expense ratio.'The fund has generally outpaced the benchmark, which is BSE 100 TRI. The 3-month returns have been slightly below par; however, such short-term aberrations are normal in actively managed funds. The fund demonstrates resilience and consistency over the long term, reflecting the manager's disciplined approach and stock picking skills,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial RadianceLooking at the yearly returns for the last 10 years, the scheme has offered negative returns in 2015 and 2018 of around 0.21% and 0.81% respectively. Across the 10 calendar years, the fund gave the highest returns in 2017 of around 32.75%.If an investor invested Rs 10,000 via monthly SIP in the scheme since its inception, the current value would have been Rs 89.25 lakh with an XIRR of 15.69%. In the last five years, the value of the same monthly SIP would have been Rs 9.66 lakh with an XIRR of 19.36%.In the last three years, the value of the same monthly SIP would have been Rs 4.73 lakh with an XIRR of 19.01%.If an investor made a lumpsum investment of Rs 1 lakh in the fund at the time of its inception, the current value would have been Rs 10.81 lakh with a CAGR of 15.03%. The value of the same investment in the last five years would have been Rs 3.16 lakh with a CAGR of 25.89%. In the last three years, the value of the same investment would have been Rs 1.76 lakh with a CAGR of 20.76%.The large cap fund had 90.66% in equity, 1.60% in debt, and 7.74% in others as on April 30, 2025. In comparison to the large cap category, the scheme is overweight on debt and others whereas underweight on equity. The category on an average had 94.10% in equity, 0.73% in debt, and 5.16% in a large cap fund, the scheme invests 84.33% in large caps, 5.86% in mid caps, 9.66% in others and 0.15% in small the allocation by the fund and being the large cap fund, Minocha advices that investors looking for active management in the large caps and who can endure some volatility, as compared to passive variants like a Nifty 50 index fund, can choose this fund and in today's market situation with high valuations across the board, there may be value in looking for more flexible options toward risk-adjusted adds that investors who have a horizon of five years or more may want to look at flexi-cap or large & mid-cap funds, where fund managers consider their allocation into different market caps depending on the valuation comfort. That being said, ICICI Pru Bluechip can still be considered for some exposure exclusive in the large-cap PE and PBV ratio of the small cap fund were recorded at 31.81 times and 5.96 times respectively whereas the dividend yield ratio was recorded at 4.89 times as of April fund had the highest allocation in the bank sector of around 24.07% compared to 26.45% by the category. The scheme is overweight on automobile & ancillaries, crude oil, infrastructure, construction materials, telecom, insurance, and top 10 stocks of the fund constitute 54.39% of the total portfolio as on April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.44 and an alpha of 0.42. The sortino ratio of the scheme was recorded at 0.81. The return due to net selectivity was recorded at 0.41 and return due to improper diversification was recorded at 0.02 in the last three investment style of the fund is to invest in growth oriented stocks in large cap market from ICICI Prudential Bluechip Fund, there are 27 funds in the category who have a track record of three years. Nippon India Large Cap Fund gave the highest return of 22.90% in the last three years, followed by DSP Large Cap Fund which gave 21.54% return in the same Bluechip Fund gave the lowest return of around 13.83% in the last three years in the large cap at the performance of the large cap funds, Minocha mentioned that when markets are volatile, there is a tendency to lean towards safety in large caps and the bigger upside offered by mid and small caps during a rally, however, can be offset by the fact that large caps tend to offer better downside protection and quicker recoveries during market corrections.'Investors with the temperament for low volatility and predictable returns are best placed with a stake in large-cap funds, which have given returns over inflation over time. Hence, a balanced investment approach combining the relative safety of large caps with selective exposure to the mid/small-cap funds can prove to be a reward in terms of returns for taking on risk,' he should always choose a scheme based on risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Economic Times
22-05-2025
- Business
- Economic Times
MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market?
Experts highlight its disciplined approach and stock-picking skills, making it a suitable option for investors seeking stability in volatile markets. With the market being volatile and experts are recommending large cap funds for investment of which one fund is ICICI Prudential Bluechip Fund. The fund is the largest fund in the category and had an AUM of Rs 68,033 crore as on April 30, 2025. Launched on May 23, 2008, the large cap fund is given five star rating by ValueResearch and Morningstar. Also Read | NFO Insight: Can Motilal Oswal Services Fund help you gain stability and long-term growth potential? Based on trailing returns, the scheme has outperformed its benchmark and category average in the last six months, nine months, one-,three-,five years. On the other hand, it has outperformed against its benchmark and underperformed the category average in the last three large cap fund offered 0.66% return in the last nine months against a loss of 1.61% by the benchmark (NIFTY 100 - TRI) and a loss of 2.02% as the category average. In the last one year, it offered 10.38% against 8.51% by the benchmark and 8.04% as the category average. In the last three years, the scheme gave 20.74% compared to 16.53% by the benchmark and 17.25% as the category average. The scheme in the last five years offered 26.07% against 23.56% by the benchmark and 22.40% as the category average. On the basis of daily rolling return in the last five years, the scheme has offered 14.55% return and based on the same parameter, in the last three years, the scheme gave 19.47% return. 'The success of ICICI Prudential Bluechip Fund can be attributed to the disciplined approach we follow in portfolio construction. Our primary focus is on avoiding significant mistakes—specifically, steering clear of stocks that could land in the bottom third of the performance curve,' commented Anish Tawakley, Co-Chief Investment Officer – Equity, ICICI Prudential AMC'We adopt a barbell strategy for stock selection. On one end, we invest in value opportunities—companies that may be under near-term pressure but offer meaningful potential for mean reversion. On the other end, we back businesses with strong growth prospects and robust fundamentals. This balanced approach helps us build a resilient portfolio that can deliver consistent, long-term performance across market cycles,' he added,An expert believes that since its inception in 1993, ICICI Prudential Bluechip Fund has had a track record of strong performance and being an actively managed large-cap category fund, it has a higher expense ratio. 'The fund has generally outpaced the benchmark, which is BSE 100 TRI. The 3-month returns have been slightly below par; however, such short-term aberrations are normal in actively managed funds. The fund demonstrates resilience and consistency over the long term, reflecting the manager's disciplined approach and stock picking skills,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance Also Read | 27 equity mutual funds offer over 25% CAGR in both 3 and 5 years. Have you added any to your portfolio? Looking at the yearly returns for the last 10 years, the scheme has offered negative returns in 2015 and 2018 of around 0.21% and 0.81% respectively. Across the 10 calendar years, the fund gave the highest returns in 2017 of around 32.75%. If an investor invested Rs 10,000 via monthly SIP in the scheme since its inception, the current value would have been Rs 89.25 lakh with an XIRR of 15.69%. In the last five years, the value of the same monthly SIP would have been Rs 9.66 lakh with an XIRR of 19.36%. In the last three years, the value of the same monthly SIP would have been Rs 4.73 lakh with an XIRR of 19.01%.If an investor made a lumpsum investment of Rs 1 lakh in the fund at the time of its inception, the current value would have been Rs 10.81 lakh with a CAGR of 15.03%. The value of the same investment in the last five years would have been Rs 3.16 lakh with a CAGR of 25.89%. In the last three years, the value of the same investment would have been Rs 1.76 lakh with a CAGR of 20.76%.The large cap fund had 90.66% in equity, 1.60% in debt, and 7.74% in others as on April 30, 2025. In comparison to the large cap category, the scheme is overweight on debt and others whereas underweight on equity. The category on an average had 94.10% in equity, 0.73% in debt, and 5.16% in others. Being a large cap fund, the scheme invests 84.33% in large caps, 5.86% in mid caps, 9.66% in others and 0.15% in small the allocation by the fund and being the large cap fund, Minocha advices that investors looking for active management in the large caps and who can endure some volatility, as compared to passive variants like a Nifty 50 index fund, can choose this fund and in today's market situation with high valuations across the board, there may be value in looking for more flexible options toward risk-adjusted adds that investors who have a horizon of five years or more may want to look at flexi-cap or large & mid-cap funds, where fund managers consider their allocation into different market caps depending on the valuation comfort. That being said, ICICI Pru Bluechip can still be considered for some exposure exclusive in the large-cap category. Also Read | Nearing retirement and want to invest Rs 50 lakh? Consider these investment options The PE and PBV ratio of the small cap fund were recorded at 31.81 times and 5.96 times respectively whereas the dividend yield ratio was recorded at 4.89 times as of April fund had the highest allocation in the bank sector of around 24.07% compared to 26.45% by the category. The scheme is overweight on automobile & ancillaries, crude oil, infrastructure, construction materials, telecom, insurance, and top 10 stocks of the fund constitute 54.39% of the total portfolio as on April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.44 and an alpha of 0.42. The sortino ratio of the scheme was recorded at 0.81. The return due to net selectivity was recorded at 0.41 and return due to improper diversification was recorded at 0.02 in the last three years. The investment style of the fund is to invest in growth oriented stocks in large cap market from ICICI Prudential Bluechip Fund, there are 27 funds in the category who have a track record of three years. Nippon India Large Cap Fund gave the highest return of 22.90% in the last three years, followed by DSP Large Cap Fund which gave 21.54% return in the same Bluechip Fund gave the lowest return of around 13.83% in the last three years in the large cap at the performance of the large cap funds, Minocha mentioned that when markets are volatile, there is a tendency to lean towards safety in large caps and the bigger upside offered by mid and small caps during a rally, however, can be offset by the fact that large caps tend to offer better downside protection and quicker recoveries during market corrections.'Investors with the temperament for low volatility and predictable returns are best placed with a stake in large-cap funds, which have given returns over inflation over time. Hence, a balanced investment approach combining the relative safety of large caps with selective exposure to the mid/small-cap funds can prove to be a reward in terms of returns for taking on risk,' he should always choose a scheme based on risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
