ICICI Prudential Value Discovery Fund turns 18! Is this the right fund for you?
Turning 18 is always a time for celebration. Everyone likes to have a big party and celebrate their coming of age. Today we introduce you to a scheme that has been adding value to many lives for a full 18 years – ICICI Prudential Value Discovery Fund. So, join us and be a part of this special time.
Value funds are a category of mutual funds that invest in value stocks or stocks that have been undervalued. Imagine buying your favourite bag or pair of shoes at a discount! This scheme type uses a similar method called ‘value investing’. It hunts for value stocks (stocks trading at a value lower than what they would under normal circumstances i.e. trading lower than their intrinsic value) with the potential to deliver commensurate returns. For example, a large-cap company which typically has high-value stocks might be undergoing some turbulence with upper management which could lead to the stock value dropping. However, once the internal issues are sorted out, there is a chance that the stock value will go up again. Therefore, those investors who bought the undervalued stocks could stand to gain from their investment. Other reasons for stocks being undervalued could be internal like product recall or a company news as well as external like political changes or even natural disasters. Fund managers of value funds are constantly on the lookout for such value stocks to create the scheme portfolio.
So, are you ready to learn more about the new 18-year-old scheme on the block? Let’s take a closer look at ICICI Prudential Value Discovery Fund.
ICICI Prudential Value Discovery Fund turns 18!
ICICI Prudential Value Discovery Fund was launched on 16th Aug, 2004. It falls under the value-oriented, open-ended equity fund category. Despite changing market conditions, the scheme has shown a positive tendency to perform well.
Here are some of the benefits you could achieve by investing in this scheme:
• The scheme invests in a wide range of stocks which in turn adds diversification to your investment portfolio.
• The scheme typically invests in between 60-70 stocks including both domestic as well as a few international stocks.
• The approach to identify discounted sectors and choose an undervalued stock could provide you with potential commensurate returns in the long-term.
• Investing in this scheme could help you achieve your long-term goals such as your children’s education, buying a house, and so on.
The scheme generally focuses on undervalued and defensive sectors (utility-oriented companies) such as utilities, consumer staples, and health care. This can help you avoid the downsides during extreme market conditions. As a value fund that follows the value investment strategy, we are bound by a SEBI (Securities and Exchange Board of India) mandate to invest a minimum of 65% of its assets in equity and equity-related instruments. Therefore, if you favour equity investments as an investor, you might want to consider the Value Discovery Fund. It is however important to note that investing in a scheme should be based on your own goals, risk appetite and time horizon.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.