For investors seeking long-term growth with reliable performance, ICICI Prudential Large & Mid Cap Fund has consistently proven to be a strong option. This fund, which has been around for over 26 years, has delivered impressive returns and maintained a 5-star rating, making it one of the notable choices in the mutual fund market. Whether through lump-sum investments or a monthly SIP (Systematic Investment Plan), this fund has provided substantial growth for investors with a steady approach.
26 Years of Strong Returns: A Closer Look
Since its inception in 1998, ICICI Prudential Large & Mid Cap Fund has yielded an impressive Compound Annual Growth Rate (CAGR) of 19.25%. Over different investment periods — 1 year, 3 years, 5 years, and since launch — this fund has consistently outperformed its benchmark. This means it has not only generated returns above the market but also brought long-term value to those invested in it.
Lump-Sum Returns: Highlights of Fund Performance
For those who invested in a lump-sum amount, here’s a breakdown of how the fund has performed recently:
- 1-Year Return: 48.31%
- Investment of Rs.1 lakh grew to approximately Rs.1.49 lakh
- 3-Year Return (annualized): 23.99%
- Investment of Rs.1 lakh grew to about Rs.1.91 lakh
- 5-Year Return (annualized): 26.18%
- Investment of Rs.1 lakh appreciated to around Rs.3.2 lakh
- Since Launch (annualized): 19.25%
- Initial investment of Rs.1 lakh in 1998 is now valued at over Rs.1 crore
The strong returns since inception highlight the fund’s ability to consistently grow wealth over the long term, offering investors a significant boost in their financial journey.
SIP Returns: Power of Monthly Investment
ICICI Prudential’s Large & Mid Cap Fund has also shown tremendous growth for those who chose the SIP route, making it accessible for investors to grow wealth with a monthly commitment of as little as Rs.5,000. With a long-term annualized return rate of 17.4% for SIP investments, the results are impressive:
- SIP Investment: Rs.5,000 per month for 26 years
- Total Investment: Rs.15.6 lakh
- Total Value Today: Approx. Rs.2.5 crore
This consistent growth through SIPs has been a significant attraction for those looking to invest smaller amounts regularly. It illustrates the long-term potential of SIP investments for wealth creation.
Sector Allocation: Diverse and Balanced
The fund’s portfolio is balanced with a focus on large and mid-cap companies from a variety of sectors, helping it manage risk while aiming for returns. Here’s a look at some of the top sectors and their allocation:
- Financial Services: 26.45%
- Automobiles: 11.42%
- Healthcare: 7.56%
- Oil & Gas: 6.37%
- Construction Materials: 5.08%
This diversified sector allocation helps to stabilize returns by spreading investments across sectors that are likely to perform well at different times in the economic cycle.
Top Holdings: Focus on Leading Companies
The fund maintains its top holdings in well-established companies that offer strong growth potential. Some of its major holdings include:
- Bajaj Finserv: 5.03%
- Maruti Suzuki: 4.80%
- ICICI Bank: 4.48%
- HDFC Bank: 4.0%
- Alkem Laboratories: 3.53%
These top companies give the fund a strong foundation, enhancing its growth potential. By focusing on large and mid-cap companies, the fund aims to deliver both stability and appreciation in value over time.
Who Should Consider This Fund?
ICICI Prudential Large & Mid Cap Fund is ideal for investors with a long-term financial horizon, especially those with an investment goal of at least five years. The fund primarily invests in a mix of large and mid-cap stocks, which can deliver significant returns over time, although market risks should be considered. Investors with moderate to high risk tolerance, looking for wealth accumulation through equity exposure, will find this fund aligned with their objectives.
Key Financial Metrics and Other Details
- Fund Size (AUM): Rs.17,464.42 crore
- Net Asset Value (NAV): Rs.936.76
- Expense Ratio: 1.69%
The fund’s sizable AUM indicates strong investor interest, and its well-managed expense ratio shows efficient cost management by ICICI Prudential.
Benchmark Comparison: Performance Against Nifty LargeMidcap 250 TRI
The Nifty LargeMidcap 250 TRI serves as the benchmark for this fund. While the benchmark has shown competitive returns, ICICI Prudential Large & Mid Cap Fund has outpaced it consistently. For example:
- 1-Year Benchmark Return: 43.26%
- Value of Rs.1 lakh: Rs.1.43 lakh
- 3-Year Benchmark Return: 21.05%
- Value of Rs.1 lakh: Rs.1.77 lakh
- 5-Year Benchmark Return: 25.5%
- Value of Rs.1 lakh: Rs.3.11 lakh
- Since Launch Benchmark Return: 15.53%
- Value of Rs.1 lakh: Rs.44.23 lakh
Compared to the benchmark, the fund’s higher returns highlight its ability to outperform the general market and deliver better results for its investors.
Disclaimer:
This article is for informational purposes only and is not financial advice. Investors should conduct thorough research and consult with a financial advisor before making any investment decisions.
