ICICI Prudential Bluechip Fund

The benchmark used in choosing the company is the top two hundred stocks listed in NSE India Ltd regarding market capitalization. The money manager decides the percentage of capital to be allocated in various assets. 

ICICI Prudential Bluechip Fund invests more than 80% of its capital in equities of large companies; the rest of the capital is equally invested in small or medium cap companies and debt instruments. The ICICI Bluechip fund invests in various sectors such as banking and financial institutions, technology-based companies, manufacturing companies, automobile sectors, pharmaceutical companies, and telecom companies. 

The ICICI Bluechip Fund is known for its risk-adjusted returns and protects against the potential downside of the market.

The ICICI Bluechip Fund scheme has four different options are:

• ICICI Prudential Bluechip fund-Dividend
• ICICI Prudential Bluechip fund-Direct Plan-Dividend
• ICICI Prudential Bluechip fund-Direct Plan-Growth
• ICICI Prudential Bluechip fund-Growth 

The ICICI Prudential Bluechip fund-Dividend fund is renamed IDCW, which stands for Income distribution cum withdrawal.

Investment Facts

Investment Objective

ICICI Prudential Bluechip Fund is a predominant Equity Scheme that enhances investors' capital by parking their funds in equities of large companies that operate in India. The main aim of the ICICI Pru Bluechip fund is long-term capital appreciation and wealth creation. 

The fund recommends an investment horizon of five years for all investors to achieve their financial goals. The fund house is best known to seize market opportunities and invests across all sectors without any bias. The ICICI Bluechip fund managers adopt a disciplined approach while picking stocks. The stocks with long-term growth potential are the only ones added to the portfolio.

The scheme is also flexible in the field of investments. The fund also generates returns from Global Depository Receipts, foreign bonds, and stock lending activities. The ICICI Pru Bluechip fund is also a diversified fund with asset allocation involving debt instruments to tackle inflation-related stagnation. The fund is best suited for conservative and risk-averse investors who want stable returns. 

The ICICI Pru Bluechip fund arrests the market's downside potential and insulates from market crashes by a diversified allocation of funds. The fund also uses derivatives such as Futures to hedge inflation and protects investor's capital.

The fund house operates under ICICI Prudential asset under management company ltd. The fund house has a team of dedicated researchers who study macroeconomic conditions and other influencing factors, which work in tandem with the fund managers.

Fund Summary

1. ICICI Prudential Bluechip Fund-Dividend

   • Risk level- Very High
   • NAV- Rs.22.90 as of 20th May 2021 
   • Expense Ratio-1.75%
   • Fund Started-23 May 2008

2. ICICI Prudential Bluechip Fund-Direct Plan-Dividend

   • Risk level-Very High
   • NAV-Rs.37.75 as of 20th May 2021 
   • Expense Ratio-1.16%
   • Fund Started-02 Jan 2013

3. ICICI Prudential Bluechip Fund-Direct Plan-Growth 

   • Risk level-Very High
   • NAV-Rs.58.87 as of 20th May 2021 
   • Expense Ratio-1.16%
   • Fund Started-01 Jan 2013

4. ICICI Prudential Bluechip Fund-Growth 

   • Risk level-Very High
   • NAV-Rs.54.94 as of 20th May 2021
   • Expense Ratio-1.16%
   • Fund Started-23 May 2008

Fund Returns Summary

1. ICICI Prudential Bluechip Fund-Dividend Returns

   Time Period	Returns Per Year(Annualized)
   6 Months	18.25%
   One year	61.87%
   Three years	10.19%
   Five years	13.05%
   10-years	13.20%

2. ICICI Prudential Bluechip Fund-Direct Plan-Dividend Returns

   Time Period	Returns Per Year(Annualized)
   6 Months	18.62%
   One year	62.94%
   Three years	11.71%
   Five years	14.74%
   10-years	14.17%

1. ICICI Prudential Bluechip Fund-Direct Plan-Growth Returns

   Time Period	Returns Per Year(Annualized)
   6 Months	18.62%
   One year	62.94%
   Three years	12.56%
   Five years	15.47%
   10-years	14.76%

2. ICICI Prudential Bluechip Fund-Growth Returns

   Time Period	Returns Per Year(Annualized)
   6 Months	18.62%
   One year	62.94%
   Three years	11.77%
   Five years	14.53%
   10-years	14.00%

Summative Pros and Cons

Benefits of ICICI Bluechip Funds

The ICICI Bluechip scheme is designed for a wide variety of investors. Some of the critical benefits of ICICI Bluechip funds are as follows:

• Risk-Adjusted Investment- ICICI Bluechip Fund provides hedged returns against market volatility. The fund invests in companies with proven credibility and strong balance sheets, thereby providing a safety net to its investors. The fund keeps an eye on companies with high cash flows and low debt. The fund house also picks companies that dish out high dividends to support investors who rely on the IDCW plan for their income. The fund ensures that the liquidity crunch is kept under check.

• Performance on Par With Indices- The ICICI PruBluechip Fund is structured to replicate the performances of benchmark indices such as NIFTY 50 TRI, NIFTY 100, SENSEX TRI which provides an approximate average annual return of 10%. The fund's diversification and global exposure ensure that it performs better than the indices mentioned earlier in the long run with lower downside risk.

• Credibility- The average investor is confident in the fund's long-term performance due to its consistent performance in terms of returns and managing the risk without jeopardizing its capital. The fund has been in existence for over a decade, catering to the needs of the investors.

• Asset Allocation Mantra- The ICICI Prudential Bluechip Fund is an open-ended mutual fund with a significant percentage of its cash being allocated to equity and equity derivatives. The fund also utilizes futures that can hedge against inflationary and deflationary economic conditions providing stable and consistent returns irrespective of the economy's performance.

• Ability to Achieve One’s Financial Goals- The investor can depend on these funds to achieve their financial success. The investors can use the gains to fund their children's milestones, such as their marriage, higher education, etc. The investor can also accumulate the corpus to attain financial freedom.

• Investing Across Sectors- The fund invests in various sectors in an unbiased manner. The fund invests in banking and financial institutions, fintech, software service industry, two-wheeler manufacturers, public sector units such as power utilities, telecom companies, chemical industries such as paint companies, etc. The diversified holdings of equity ensure that risks related to sector slowdown are thoroughly addressed.

• Investment Options- The ICICI Bluechip Fund provides different investment options to its investors. The fund provides a lump sum option where the investor can purchase several units in bulk. The fund provides another option called Systematic Investment Plan (SIP), where conservative investors can purchase units monthly or quarterly irrespective of the market conditions.

Fund House Details

The ICICI Bluechip Fund is managed by ICICI Prudential Asset Management Company Ltd, one of the most renowned mutual fund houses in the country. The company's primary aim is to encourage commoners to invest in equities for the creation of wealth. The company is co-owned by ICICI Bank Ltd, a well-known private bank in India, and Prudential Plc, a private player in the financial sector with its base in the United Kingdom. 

The AMC has under its belt a large chunk of AUM (Asset Under Management) in the mutual fund business. It also provides other services such as Portfolio Management Services and International Advisory Mandates for customers across global markets linked to debt, equity, and real estate.

The AMC has its presence in over 300 locations serving a customer base of over 6 million investors. The parent company and its sponsors are given below:

1. ICICI Bank

   ICICI bank is one of the leading private banks in the country in the banking space. It is a publicly listed bank with total assets valued at Rs.13.77 trillion as of March 2020. The bank has its presence nationally with 5,324 branches and 15,688 ATMs. The bank is known for its customer-centric approach and provides utmost priority for the satisfaction of its customers.

2. Prudential Plc

   The company is known for its financial services such as life and health insurance. It also provides services related to asset management and solutions related to retirement. The company serves around 20 million customers worldwide and is publicly listed in London, Hong Kong, New York, and Singapore.

   The Prudential plc Group consists of subsidiaries, including Prudential Corporation Asia, Jackson Holdings LLC, and Prudential Africa.

Who Should Invest In ICICI Bluechip Fund?

ICICI Bluechip fund provides great returns if invested for a more extended period. The fund is tailored for investors who are seeking:

1. Wealth Creation

   The main advantage of the ICICI Bluechip Fund is its ability to adjust risk and provide returns without capital loss. The investor who is disciplined and remains calm in the face of market volatility over a long period can accumulate a significant corpus. 

   The fund house recommends a time horizon of five years to its investors to reap the scheme's benefits. The investors can also take advantage of dividend funds to generate regular income during retirement and pension years. The investor must understand the risk factors before purchasing units of the fund.

2. Conservative Investment Approach

   Investors who constantly worry about market volatility can opt for the ICICI Bluechip Fund. The bluechip fund is well diversified across all asset classes ensuring steady returns irrespective of the market volatility. The bluechip fund invests a significant portion of its cash in large-cap companies which are matured, accomplished, and non-cyclical. 

   The large-cap companies become less volatile over a more extended time, reducing unwanted stress off the investors. The Bluechip fund also invests a small portion of its capital in debt instruments that come in handy during rising inflation. 

   The practice of spreading the capital across all asset classes and various industries can result in hedging during market crashes and protects the investor's capital from downside risks. Investors can choose the ICICI Bluechip fund to avoid sleepless nights during market corrections. It also ensures the growth of one's portfolio without exposing one to the risk of capital loss.

Let the Money Grow

The ICICI Bluechip is designed to meet the needs of investors with limited knowledge of the workings of the equities and equities market. The fund serves investors who opt for growth and those who opt to receive a fixed income. The scheme is structured in a well-planned manner, suiting the needs of the young and the old alike. One can also invest in this scheme monthly.

FAQ's