Dream run for ICICI equity funds

Mar 30 2014, 12:03 IST
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ICICI Prudential Top 100 Inst I emerged the top large-cap scheme for the one-year period, with returns of 26.45%. Reuters ICICI Prudential Top 100 Inst I emerged the top large-cap scheme for the one-year period, with returns of 26.45%. Reuters
SummaryFour schemes from its stable among top 10 performers in past one year

In a year when midcap funds dominated the proceedings and benchmark indices remained volatile, a few large-cap funds have proved their mettle, handsomely beating returns of their underlying benchmarks.

ICICI Prudential Top 100 Inst I emerged the top large-cap scheme for the one-year period, with returns of 26.45%, beating CNX Nifty’s benchmark returns of 17.75% by a wide margin, data collated from mutual fund tracker Value Research shows. Motilal Oswal MOSt Shares M50 ETF was the second-best performer with returns of 25.36%.

It has been a dream run for ICICI Prudential MF, with four of its schemes featuring among the top 10 performers. These include ICICI Prudential Focused Bluechip Equity Inst I (23.75%), ICICI Prudential Target Returns Reg (23.33%) and ICICI Prudential Indo Asia Equity Direct (20.97%). These four schemes manage about R5,300 crore by way of assets.

BOI AXA Equity Reg Direct (21.45%), UTI Equity Direct (21.11%), BOI AXA Equity Eco (21.04%) and HDFC Index Sensex Direct (20.26%) were some other top performers for the one-year period.

“The uptick in the market has helped large-cap funds. Schemes that have invested in growth-oriented stocks and that have avoided concentration on few sectors or themes have outperformed,” said Sameer Hassija, senior investment analyst, Morningstar India. He added that the focus on growth stocks has particularly helped boost the performance of some of ICICI Prudential MF’s schemes.

Growth stocks are typically associated with high-quality companies trading high price-to-earnings (P/E) ratios and high price-to-book ratios whose earnings are expected to continue growing at an above-average rate relative to the market. Value stocks tend to trade at a lower price relative to their fundamentals, but they may have fallen out of favour in the market.

HDFC Top 200, one of the flagship schemes of HDFC MF that had been struggling in FY13, has made a comeback of sorts in recent months, thanks to its robust performance in the past six months. The scheme was the best performer during the period with returns of 20.9%, beating S&P BSE 200’s benchmark returns of 14.13%.

It’s also the third-best performing scheme in the three-month period, with returns of 5.88%. HDFC Top 200’s assets under management is R10,546 crore.

Notably, top diversified equity mutual funds had a rough run in CY13 with half of the funds underperforming the benchmarks owing to sustained volatility and a lack of directional trend in the market. The underperformers included large-cap schemes

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