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ICICI Prudential Bluechip Fund

The fund, formerly known as ICICI Prudential Focused Bluechip Equity Fund is a growth-oriented large-cap equity mutual fund. The objective of the fund is to generate long term capital appreciation and income distribution for its unitholders.

Launched in May 2008, the fund has been a consistent top performer in the category with above-average returns since inception. As of June 30th 2019, the fund is ranked third by CRISIL Ratings, a recognition of its stellar performance.

The fund predominantly invests in equity and equity-related securities of fundamentally strong large-cap companies, which offers growth as well as stability during volatile market conditions to investors.

Features of ICICI Prudential Bluechip Fund

  • The fund is classified as an open-ended equity mutual fund, primarily investing in large-cap equity stocks and related securities.
  • The indicative investment horizon of the fund is five years and above.
  • It offers investment under both Regular Plan and Direct Plan.
  • Under both plans, the fund offers Growth, Dividend, and Dividend-Reinvestment options to its investors.
  • Growth Option is the default option for investing and Dividend- reinvestment is the default sub-option.
  • The minimum investment amount is Rs. 100 and in multiples of Re. 1.
  • The minimum additional investment amount is Rs. 100 and in multiples of Re. 1.
  • SIP investment is available on a daily, weekly, fortnightly, and monthly basis with a minimum investment amount of Rs. 100 and in multiples of Re. 1.
  • Quarterly SIP investment is also available with a minimum investment amount of Rs. 5000 and in multiples of Re. 1.
  • The minimum redemption amount is Rs. 100 and thereafter in multiples of Re. 1.
  • Entry Load is not applicable to the fund.
  • The Exit Load of 1% is applied if the investment redemption is done within 365 days of investing.
  • The fund offers a Systematic Transfer Plan (STP), Flex STP, and Value STP to its investors.
  • The minimum amount for daily frequency STP is Rs 250 and in multiples of Rs. 50. And, for weekly, monthly and quarterly frequency STP, the minimum amount is Rs. 1000, and in multiples of Re 1.
  • The fund offers a Systematic Withdrawal Plan (SWP) available to its investors with minimum withdrawal amount being Rs. 500 and in multiples of Re. 1.

Investment Objective of ICICI Prudential Bluechip Fund

The investment objective of the scheme is:

"The scheme seeks to generate long term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity-related securities of large-cap companies. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved." The fund maintains 89.92% of its assets in giant and large market cap companies, 2.89% of the asset is invested in Nifty 50 Index-Futures and rest 7.38% of the asset is invested various short term debt securities.

In earlier days after the introduction, the fund restricted its investment activity in up to 20 large-cap companies, selected from the top 200 companies listed on the National Stock Exchange. But, there was a condition that, if the fund's AUM crosses Rs. 1000 crore, then the fund managers can widen their investment activity beyond 20 companies.

Now, after more than ten years of inception, the fund has an AUM of Rs. 21,125 crore (as in July 31st 2019), with exposure in 52 stocks.

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Statistics of ICICI Prudential Bluechip Fund

  • Date of Inception: 23 rd May 2008.
  • Benchmark Index: Nifty 100 TRI.
  • Return Since Inception: 13.17% (As on August 31st 2019).
  • Risk Grade: High.
  • Returns: Above Average.

Key Ratios

Turnover Ratio 24%
Expense Ratio (Regular Plan) 1.83%
Mean 9.07%
Standard Deviation 11.37%
Sharpe Ratio 0.27%
Sortino 0.44%
Beta 0.86%
R-Squared 0.95%
Alpha -1.68%

Fund Managers

Anish Tawakley

Mr. Tawakley is managing the fund since September 2018 along with three more funds within the ICICI Pru AMC stable. Prior to joining ICICI AMC, Mr. Tawakley has worked with many asset management companies, like Barclays India - Equity research, Credit Suisse India - Equity research, Indian financial services sector.

He has completed his PGDM from IIM Bombay and B. Tech (Mechanical Engineering) from IIT Delhi. Rajat Chandak

Mr. Chandak is managing the fund since July 2017, with nine other funds belonging to the ICICI Pru AMC.

Mr. Chandak has been associated with ICICI Prudential AMC since 2008 and holds B.COM (H) and MBA degree.

ICICI Prudential Bluechip Fund (G): Regular Plan Performance

Investment Period Annualised Return (%) Category Average (%)
1 Year -6.59 -5.83
3 Year 7.93 6.54
5 Year 8.71 7.85
10 Year 12.73 10.42

Returns recorded as on August 31st 2019

SIP Returns 1 yr 3 yr 5 yr 10 yr Since Inception (May 2008)
Fund Returns (CAGR %) -2.55 5.37 8.04 11.90 13.21
Benchmark Returns (CAGR%) -2.10 6.88 8.72 10.93 11.66

Returns recorded as on July 31st 2019

Top Holdings of ICICI Prudential Bluechip Fund

The top 10 holdings of the fund constitute 48.62% of the total portfolio.

Stocks Percentage
HDFC Bank 9.36
ICICI Bank 6.83
Infosys 6.37
Bharti Airtel 4.19
HDFC 3.85
SBI Life Insurance 3.84
NTPC 3.73
ITC 3.72
Larsen & Toubro 3.41
Axis Bank 3.41

Why Invest in ICICI Prudential Bluechip Fund?

Launched during the period of economic uncertainty and global recession, the scheme has proved its mettle in the tough market conditions and different economic cycles. It has generated above-average returns for its investors compared to its peer in the category over the long term.

The fund's strategy to invest in fundamentally strong large-sized companies has paid off handsomely. This has allowed them to better deal with the short-term volatility and pocket higher returns during the market recovery.

Over the long term period (five years to ten years), through its well-executed investment strategy, the fund has outperformed its category in range of 1% to 3%.

Other Technical Reasons to Invest in ICICI Prudential Bluechip Fund

A Low turnover ratio of 24%

Turnover Ratio (TR) indicates the number of portfolios changed during the given period. Most of the actively managed equity mutual funds have TR of close to 100%, which means the fund's portfolio witnesses a change of 100% during the given period. Higher TR translates into a higher expense ratio, which affects the overall return of the fund.

With low TR, the fund managers are able to keep the fund's operating costs low, thus increasing the return percentage.

Low Standard Deviation (SD)

The fund has an annualised SD of 11.37 compared to benchmark SD of 12.91, which indicates lower volatility in the fund and more predictable returns.

Low Beta

Beta is the measure of volatility in the fund with respect to the benchmark index. The fund's portfolio Beta of 0.86 indicates that the fund is theoretically less volatile compared to its benchmark index and is less risky too.

Higher Sharpe Ratio

Sharpe Ratio is one of the most important ratios to look at before buying a fund. It calculates the risk-adjusted returns of the fund. High value of the ratio means the fund is able to generate better returns against the amount of risk taken. The fund has a Sharpe ratio of 0.29, compared to the category average of 0.15, which means the fund has better risk-adjusted returns amongst its peers.

Documents Required for ICICI Prudential Bluechip Fund

Investment in ICICI Prudential Bluechip Fund can be made through both online and offline modes.

In offline mode, you need to approach a registered mutual fund adviser or visit the nearest ICICI Pru office with the following documents:

  • PAN Card.
  • Aadhaar Card/ Voter-ID/ Passport.
  • Bank statement (6 months).
  • A cancelled cheque leaflet (in case of SIP).
  • Filled-in application form. Under the online option, an investor has two options, through which an investment can be made in the ICICI Pru Bluechip Fund.

First Option

Visit the website of ICICI Pru AMC and get yourself registered by providing a valid email address and mobile phone number. After successful account creation, fill the basic details and upload the soft copies of PAN Card & Aadhaar Card to complete the eKYC verification process.

Then, in the next step, select the fund you want to invest, enter bank account details to set up SIP account and to process the redemption when the units are redeemed.

Second Option

You can Invest through FinTech platforms, where you first need to set up an account and complete the eKYC verification process, the same as in the first option.

After successful e-verification, select the fund house and scheme you want to invest in, and fill in the necessary details as prompted by the system to get started with your investment journey.

FAQs on ICICI Prudential Focused Bluechip Equity Fund

What is ICICI Prudential Focused Bluechip Equity Fund?

ICICI Prudential Focused Bluechip Equity Fund is the former name of ICICI Prudential Bluechip Fund. It changed its name on May 28th, 2018 and is an open-ended large-cap equity mutual fund.

With the change in its name, the fund also revised its benchmark index from Nifty 50 TRI to Nifty 100 TRI.

It focuses on long term wealth creation and income distribution by investing in fundamentally strong large-cap companies. The fund is not a very-aggressive type and aims to generate higher returns compared to its benchmark index.

The scheme is ranked 3rd by CRISIL rating for its consistent and above-average returns since its inception.

How is ICICI Prudential Bluechip Fund?

ICICI Prudential Bluechip Fund is the consistent top performer in its category since its inception and is well-suited for every kind of investors, whether conservative or aggressive.

The fund's strategy to invest in large-sized companies with long business history has helped it to beat the bear cycles in the last ten years and pocket huge gains during the recovery process. Further, the fund has a great risk-adjusted return in the category, with less volatile and less risky portfolio combination.

Further, the fund closely follows the performance of its benchmark index, which is quite evident from the fund's R-Squared value of 0.95. Since its inception, the fund has provided an annualised return of 13.17%. Also, in the past 5 years and 10 years period, it has generated a return of 8.71% and 12.71%, respectively, thereby outperforming its category and benchmark by a healthy margin.

What are 'Bluechip' funds?

The term 'Bluechip' stock was first coined by Oliver Gingold, an employee at Dow Jones in 1923 to refer to the highly-priced stocks at that time. However, the origin of the word blue chip can also be found in the game of poker, where blue chips are the most expensive chip in the game. Now, the term bluechip is more synonymous to high-quality stocks.

Bluechip Funds indicate those funds which invest in well-established companies with a credible track record, sound financials, consistent profitability and regular-dividend payments.

The stocks of bluechip companies are known to be less volatile compared to stocks of mid and small-cap companies. In general, bluechip companies are more likely to survive the economic downturn period, which makes it a safer investment option for long term.

Which are the best mutual funds?

There are many ways through which you can find the best mutual funds in different categories. But, the primary criteria for choosing the best mutual fund should be to check whether the fund is true to its stated investment objective. This criterion greatly helps in deciding whether the fund would turn out to be a worthy investment in the long term period for you or not. Sticking to investment objective shows the fund manager's discipline, conviction and the probability of success in the long term. Other criterion includes,

  • Performance Ranking: Whether the fund has outperformed in its category and benchmark in the long term period or not. Also, it is indicative of how consistent the performance is.
  • Ratio Analysis: By checking risk-return ratios of the fund, it will help you determine the fund's future performance and how volatility in the market will affect the return of the fund.
  • Fund Manager: Experience and track record of the fund managers matters a lot. Though mutual fund investing and portfolio selection is a process-driven approach, but in the end, the fund manager has to take the call on investment strategy and stock selection. Checking on the performance of other funds managed by the same fund manager can reveal a lot of things.
  • Asset Size: It shows the investor's confidence in the mutual fund scheme and is closely watched by the industry people on a regular basis so that risk gets minimised.

Small AUM schemes are very risky, as the quality of investors in such scheme remains a question and also doesn't have a consistent investment objective.