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ICICI Prudential Value Discovery Fund

ICICI Bank, one of the leading private sector bank in India through its asset management company ICICI prudential asset management company, has introduced the ICICI prudential value discovery fund with an objective to offer opportunity to its investors to generate higher returns on their investments. The ICICI Prudential value discovery fund is designed to offer income and growth opportunity to its investors. Investors can earn income on their investment through dividend option and can see growth in their investments by way of capital appreciation. The fund is suitable for investors who have moderately high-risk profile as the investment of ICICI Prudential Value Discovery Fund is done in equity and equity related securities of the capital market. Let us understand in depth about the ICICI Prudential Value Discovery Fund.

Features of ICICI Prudential Value Discovery Fund

The ICICI Prudential Value Discovery Fund is an open-ended equity scheme designed to generate value to your investment through systematic investment strategy. Following are the key features of the ICICI Prudential Value Discovery Fund:

Click to know more about Key Features of ICICI Prudential Value Discovery Fund

Following are the details of the various schemes available under this fund and their latest Net Asset Value.

Schemes Available under the fundLatest NAV in Rs.
ICICI Prudential Value Discovery Fund – Direct Plan – DividendRs. 45.90 as on 30th July 2019
ICICI Prudential Value Discovery Fund – Direct Plan - GrowthRs. 147.42 as on 30th July 2019
ICICI Prudential Value Discovery Fund – GrowthRs. 138.55 as on 30th July 2019
ICICI Prudential Value Discovery Fund – DividendRs. 25.09 as on 30th July 2019

Things to Consider Before Investing in ICICI Pru Value Discovery Fund

ICICI Prudential Value Discovery Fund is one of the best mutual fund schemes offered by ICICI Prudential because for the feature that it looks out for stocks that are available in the capital market at lower price as compared to their intrinsic value. The lower price parameter is judged on factors like Low Price to Book Value, Low Price to Earnings, High Dividend yield etc.

The ICICI Prudential Value Discovery Fund is a multi-cap fund i.e. it can invest in stocks of companies across varied market capitalization. Following are a few things that every investor must consider before investing in the ICICI Prudential Value Discovery Fund:

  • This fund is a multi-cap scheme, and hence, investors who are willing to invest in stocks of companies having varied market capitalization must consider this fund.
  • The investment objective of this fund is to offer a combination of dividend income and capital appreciation by investing the corpus in well-diversified portfolio of value stocks.
  • Investing in ICICI Prudential Value Discovery Fund is suitable for investors who are looking for:
    • Long term wealth creation
    • Are willing to invest in open ended equity scheme investing in value stocks
    • The risk profile of the scheme is moderately high. Hence, this scheme is suitable for investors who have a comparatively high-risk appetite and are not very affected by the volatility of the capital market.
  • The scheme carries a moderately high-risk profile; so it is recommended investors carry extensive market research before investing.
  • Similarly, if an investor has any doubt regarding the scheme, it is advised to either approach ICICI prudential, or consult an expert financial advisor before investing

When to Redeem a Fund

Capital Market is huge and it offers numerous opportunities to the investors to invest in the market. There are various investment tools available in the market with which investors can invest in a fund. Investors who are willing to create wealth from investing indulge in extensive investment. But the downfall of it is that after a certain timeframe, it becomes tedious to track the performance of each fund and the more difficult part is to decide when to exit and redeem a fund. The golden rule of investing in capital market is to know the right time to purchase, hold and redeem the fund.

Redemption from mutual funds is allowed by most of the mutual fund companies. However, each mutual fund has different terms and conditions for redemption. Investors are advised to have complete knowledge regarding the guidelines of redemption of units before investing in ICICI Prudential Value Discovery Fund.

Experts suggests, that the right time to redeem a fund varies from investor to investor as it depends on the financial appetite and goals of the investors. One investor might have a short-term financial goal of buying a car, while the other might have a long-term financial goal like retirement planning or buying a house. So, if the investor is reaching at the end of the pre-decided timeframe, then it is suggested that the investor redeems the fund and that too irrespective of the market conditions.

Following are the main reasons for investors to redeem a fund:

  • When financial goal is achieved: The most common reason for redeeming a fund is after the financial goal of the investor is met as the investor is no longer interested to go further about the investment, he /she may think fit to redeem the fund.
  • When Asset Management Company is not delivering results as promised: The main reason behind investors investing in a particular mutual fund scheme is the objective of investing. If the financial goals of the investors and investment objective of the scheme are in sync, investors usually invest in such mutual fund schemes. However, if the Asset Management Company is not delivering results as promised in the investment objective, an investor might think of pulling the investments by redeeming the fund.
  • When the Market conditions are favourable: Many of the investors usually redeem their investments from mutual fund when the markets are running high. This is because they get good value for their investment. But in reality, redeeming a fund during favourable conditions might not always be a good investment strategy as long-term returns might be much more profitable than short-term gains.
  • The Mutual Fund Scheme is not performing as expected: There might be some market conditions that might lead a mutual fund to under-perform. In such scenario, investors think that it is best to redeem the fund.
  • Financial Emergency: Financial Emergency comes uninvited, and usually it is the mutual fund tool that is redeemed in the first place as it is highly liquid in nature. Even though the investments in mutual fund scheme is done to safeguard the financial requirement arising in the future, keeping the investment intact for a longer duration is beneficial as it will garner maximum benefits.

Thus, above are some reasons for investors to redeem a fund. However, it is highly recommended to avoid redeeming mutual funds that are created for fulfilling a goal. Also, before redeeming a fund, it is advisable that an investor be mindful regarding the terms and conditions of redemption like exit load, tax implication etc.

How to Redeem Mutual Funds

Once the investor has finalized to redeem their investment from mutual fund, then redeeming funds from mutual funds is quick and simple. Investors can redeem their mutual funds in the following manner:

  • Through Asset Management Company: Investor can redeem their mutual funds through their asset management company. Investor can choose to sell the entire lot or few units as per their requirement. The redemption of mutual funds, either partially or fully, can be done via online portal i.e. through the official website of the Asset Management Company or through offline channel i.e. by visiting the nearest office of the Asset Management Company.
  • Through investors Dematerialized or Trading Account: If an investor is investing in the mutual fund via trading or dematerialized account, then an investor can redeem the mutual funds via their online trading or dematerialized account.
  • With the help of Agent: If an investor has purchased or invested in mutual fund via offline channel i.e. through an agent or distributor, then the investor can contact the agent and get the investment in mutual fund redeemed.
  • Through Registrar & Transfer Agency: Investors can also contact the registrar and transfer agencies like CAMS & Karvy to carry out the process of mutual fund redemption.

For redemption of mutual fund, investor is required to fill the redemption form completely and submit it either to the branch office or place a request on the online portal. Once the request of redemption is received by the Fund house, they will process the redemption request and transfer the redemption amount in the investors account via various pay – out modes, namely NEFT or RTGS. Let us have a look at how units are redeemed of ICICI Prudential Value Discovery Fund. Following is the process of redemption observed by ICICI Prudential:

For investors who want to redeem their units from ICICI Prudential Value Discovery fund, firstly need to submit completely filled redemption request form at ICICI Prudential’s Official Point of Transaction Acceptance Branch or at CAMS official point of Transaction Acceptance counter before the cut-off time. For all transactions related to capital market and for redemption transactions, the cut-off time is 3 P.M. Once the redemption request is received by the Asset Management Company, they shall process the request as per the net asset value of the fund scheme on the given date.

If the redemption request form is submitted by the investor after 3 PM, then the redemption transaction shall be processed on the next day and the net asset value of the next working day shall be applicable.

SEBI has also laid down the guidelines related to release of redemption proceeds by the Asset Management Company. As per SEBI’s direction, all the redemption proceeds need to be released within maximum 10 working days. However, once the redemption request is received by ICICI Prudential, it attempts to release the redemption proceeds to the investor as per below given time period:

  • For Money Market Fund – (Liquid and Sweep) - T+1 business day
  • For Debt oriented scheme (including close ended and open-ended schemes) – T+1 business day
  • For Equity oriented scheme (including close and open-ended schemes) – T+3 business days.
  • ICICI Prudential US Blue Chip Fund – T+5 business days.

Kindly note, T stands for the date of redemption transaction acceptance before cut off time (i.e. 3 PM). ICICI Prudential pays the redemption proceeds to its investors in the following pay – out mode:

  • Direct Credit in the bank account of the investor, if the investor holds account in any one of the given banks namely: ICICI Bank, HDFC Bank, Citibank and HSBC Bank
  • NEFT (for redemption amount less than Rs. 2.00 Lakhs) or RTGS (for redemption amount more than Rs. 2.00 Lakhs)
  • Demand Draft or Cheque

Thus, in this manner, the above article is a complete guide for investors who are seeking an opportunity to invest in ICICI Prudential Value Discovery Fund.

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