This small-cap equity mutual fund gave 36.5% returns in 3-year period; should you invest?
Getty Images
ICICI Pru Small Cap has exhibited healthy outperformance over three and five years
Synopsis
ICICI PRU SMALL CAP: Under the new mandate, the fund has a portfolio balanced between quality compounders and normalcy candidates on the path to recovery. While it has struggled in the past year, it has exhibited healthy outperformance over three and five years. Aggressive investors seeking pure-play small cap exposure may consider this fund.
ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
ADVERTISEMENT
BASIC FACTS DATE OF LAUNCH 18 OCTOBER 2007 CATEGORY EQUITY TYPE
Should You Buy Amid the industry-wide re-categorisation exercise in 2018, this fund was repositioned from its earlier market-cap neutral, partdomestic and part-overseas equities avatar, under ICICI Pru India Asia Equity fund, to its current small-cap mandate. Under the new mandate, the fund has a portfolio balanced between quality compounders and normalcy candidates on the path to recovery. The fund consciously remains almost exclusively small cap, differentiating itself from peers taking sizeable exposure to mid or large caps. This makes it a true-to-label small-cap offering, potentially lending more fire power in favourable conditions, while acting as a drag on the downside. Its track record under the revised mandate is very limited. While it has struggled in the past year, it has exhibited healthy outperformance over three and five years. Aggressive investors seeking pure-play small cap exposure may consider this fund.
