Best Large cap equity fund : ICICI Prudential India 22 FOF – Growth

Best Large cap equity fund : ICICI Prudential India 22 FOF – Growth
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What is an Equity Mutual fund?

An equity Mutual Fund is a type of investment fund that pools money from various investors to invest primarily in stocks or equities of different companies. It provides investors with exposure to a diversified portfolio of stocks without requiring them to directly purchase individual stocks.

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Is Equity Mutual fund a good investment option ?

The following factors make equity mutual funds a good investment option.

Diversification:

Equity Mutual Funds spread investments across a variety of stocks, reducing the risk associated with investing in a single company.

Liquidity:

Investors can easily buy or sell units of Equity Mutual Funds on any business day, providing liquidity to their investments.

Accessibility:

Mutual funds allow even small investors to access a diversified portfolio that would be difficult to create on their own.

Professional Management:

Fund managers with expertise in stock markets actively manage the portfolio, making investment decisions on behalf of the investors.

Affordability:

Investors can start with a relatively small amount of money, making mutual funds an affordable investment option.

Transparency:

Fund managers provide regular updates about the fund’s holdings, performance, and strategies, ensuring transparency for investors.

Long-Term Growth Potential:

Historically, equity markets tend to provide higher returns over the long term, which can benefit investors seeking capital appreciation.

Tax Benefits:

Some Equity Mutual Funds, like Equity Linked Savings Schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act in certain countries.

Choice of Schemes:

Equity Mutual Funds offer various schemes tailored to different risk appetites, investment horizons, and financial goals.

What is a large cap equity mutual fund?

A Large Cap Equity Mutual Fund is a type of equity mutual fund that primarily invests in the stocks of large-cap companies. Large-cap companies are those with a significant market capitalization, typically ranking among the top 100 companies in terms of market value. These companies are often well-established, stable, and considered leaders in their respective industries.

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Why should we invest in large Cap mutual funds?

Given below are factors that will tell us why we should invest in Large Cap Equity Mutual Funds

Lower Risk:

Large caps are considered to have lower risk due to their established operations, broader customer bases, and often stronger financial positions.

Dividend Potential:

Many large-cap companies distribute dividends, making these funds suitable for investors seeking regular income in addition to potential capital appreciation.

Blue-Chip Stocks:

Many large-cap companies are commonly referred to as “Blue-Chip” stocks, a term used to describe well-established, financially sound companies with a history of stable performance.

Suitable for Conservative Investors:

Large Cap Equity Mutual Funds are often considered suitable for conservative or risk-averse investors who prioritize stability and are willing to sacrifice higher growth potential for lower risk.

Long-Term Growth:

While large-cap funds might not offer the same growth potential as mid-cap or small-cap funds during bullish market conditions, they can provide consistent long-term growth.

Stability:

Large-cap companies are often leaders in their industries and tend to be more stable during market downturns compared to smaller companies.

Best Large Cap Equity Mutual Fund: ICICI Prudential India 22 FOF – Growth :

ICICI Prudential India 22 FOF – Growth Fund Information:

The fund house of ICICI Prudential India 22 FOF – Growth fund is ICICI Prudential Mutual Fund, fund type is Open ended, fund class Equity, fund category is Large Cap and the fund size of ICICI Prudential India 22 FOF – Growth fund is ₹198.75 Crore and expense ​​is 0.08. % . There is no lock-in period in ICICI Prudential India 22 FOF – Growth.

The current NAV of ICICI Prudential India 22 FOF – Growth is ₹20.49 which is 0.08% lower than its previous NAV. The 52 Week High NAV of ICICI Prudential India 22 FOF – Growth is ₹20.99 while the 52 Week Low NAV of 52 WWEKS is ₹14.97.

Returns of ICICI Prudential India 22 FOF – Growth:

Absolute return does not take into account the time frame of the investment. It can be calculated using the purchase price and the selling price. However, the annualized return takes into account the investment time frame. It can be calculated using the buy price, sell price and investment time horizon.

According to one time investment :

ICICI Prudential India 22 FOF – Growth has given annualized return of 34.05% in last one year, 37.67% in 3 years and absolute return of 34.25% in last one year ,160.92% in last 3 years.

According to SIP:

ICICI Prudential India 22 FOF– Growth has given absolute return of 16.68% in last one year, 58.65% in 3 years and 80.78% in last 5 years.

What is the minimum sip investment and minimum lumpsum investment of ICICI Prudential India 22 FOF – Growth?

In ICICI Prudential India 22 FOF – Growth, the minimum SIP investment amount is ₹1,000 and the minimum lumpsum investment amount is ₹5,000.

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Taxation rules in ICICI Prudential India 22 FOF – Growth:

ICICI Prudential India 22 FOF – Growth with the following tax rules: Long term capital gain (LTCG) above Rs 1 lakh is taxed at 10% without indexation. Short Term Capital Gain (STCG) is taxed at 15%.

Calculation of profit from ICICI Prudential India 22 FOF – Growth:

Let’s assume Monthly SIP: ₹ 10,000 Maturity period: 5 years Absolute Return Rate: 80.78% Total Investment ₹ 6 Lakh Total Profit : ₹4.84 Lakh Total Maturity Amount : 10.84 Lakh .

Let’s assume Lumpsum investment: ₹ 1 lakh Maturity period: 3 years Absolute Return Rate:160.98% Total Profit : ₹1.60 Lakh Total Maturity Amount :₹2.60 Lakh .

Portfolio of ICICI Prudential India 22 FOF – Growth:

Asset allocation:

Asset
Allocation(%)value(cr)
Equity99.5%₹197.76
Debt0%₹0
Others0.47%₹0.99
Asset Allocation of ICICI Prudential India 22 FOF – Growth

Sector allocation:

sectorAllocation(%)value(cr)
Energy 34.87 % ₹69.3
Financial 19.22%₹38.2
Construction 16.42%₹32.63
Consumer Staples 15%₹29.81
Capital Goods5.05%₹10.04
Sector Allocation of ICICI Prudential India 22 FOF – Growth

Comparison Table with ICICI Prudential India 22 FOF – Growth:

Scheme Monthly SIPTenureAbsolute ReturnProfit
ICICI Prudential India 22 FOF – Growth₹10,000 5 years80.78% ₹4.84Lakh
Bank FD ₹10,0005 years19.33%₹1.16Lakh
Category Average ₹10,0005 years45.53%₹2.73Lakh
Gold₹10,0005 years31.5%₹1.89Lakh
Comparison Table with ICICI Prudential India 22 FOF – Growth

FAQs:

How does this ICICI Prudential India 22 FOF – Growth fund’s portfolio allocation look like?

ICICI Prudential India 22 FOF – Growth fund’s portfolio is predominantly allocated to equity (99.5%) with holdings in various sectors like energy, financial, construction, consumer staples, and capital goods.

How does ICICI Prudential India 22 FOF – Growth fund compare with other investment options?

Compared to options like bank fixed deposits and gold, ICICI Prudential India 22 FOF – Growth shows potentially higher returns, making it an attractive investment choice.

What are the tax implications of investing in ICICI Prudential India 22 FOF – Growth fund?

Long-term capital gains above ₹1 lakh are taxed at 10% without indexation, while short-term capital gains are taxed at 15% for ICICI Prudential India 22 FOF – Growth.

What are the minimum SIP and lumpsum investments for ICICI Prudential India 22 FOF – Growth fund?

The minimum SIP investment for ICICI Prudential India 22 FOF – Growth is ₹1,000, while the minimum lumpsum investment is ₹5,000.

What is ICICI Prudential India 22 FF Growth Fund?

ICICI Prudential India 22 FOF – Growth is a large-cap equity mutual fund offered by ICICI Prudential Mutual Fund. It has a track record of growth with an expense ratio of 0.08%.

Why should I consider investing in large-cap mutual funds?

Investing in large-cap mutual funds can offer stability, lower risk, dividend potential, liquidity, access to blue-chip stocks, long-term growth, and suitability for risk-averse investors.

Can you provide an example of returns from ICICI Prudential India 22 FOF – Growth fund?

Sure, for instance, if you invested ₹10,000 per month for 5 years in ICICI Prudential India 22 FOF – Growth with an 80.78% return rate, your total profit could be around ₹4.84 lakh.

Disclaimer:

The information provided in this blog is for general informational purposes only and should not be considered as professional financial or investment advice. Always conduct thorough research and seek advice from a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any actions taken based on the information provided in this blog. Any reliance on the content is at your own risk. Remember that the financial markets can be volatile, and past performance is not indicative of future results. The company mentioned in the blog may have undergone changes or developments that are not reflected here. Please verify the information with credible sources before making any financial decisions.

1 thought on “Best Large cap equity fund : ICICI Prudential India 22 FOF – Growth”

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