ICICI Prudential Bluechip Fund; Why are Conservative Equity Investors Loving It?

There is a class of mutual fund investors who prefer to stick with a promising equity scheme which involves low risk. Such investors are finding the ultimate shelter in ICICI Prudential Bluechip Fund as it is one of the most consistent schemes in India. Despite gaining lower returns than most of the peers, investors are delighted to invest in the large-cap fund of ICICI Prudential Mutual Fund. Read to know what makes this large-cap fund with decent outputs, one of the most chosen schemes in India.

What is ICICI Prudential Bluechip Fund?

It is the most chosen large-cap fund in India that invests in the stocks of the best quality to deliver long term gains to the investors. It is one of the most consistent schemes in Indian mutual fund industry as the NAV of ICICI Prudential Bluechip Fund has been least volatile among the peers. The fund managers Mr Rajat Chandak and Mr Anish Tawakley aim to maintain consistency and lower volatility even if they have to compromise on returns. Due to the consistent performance and lower volatility in equity investments, the fund has been largely chosen and holds gigantic AUM despite coming later than most of the peers in the market.

Why is it Highly Chosen?

If we look at the trailing returns generated by ICICI Prudential Bluechip Fund, it can be observed that many other large-cap funds have provided better returns than this scheme. However, the AUM is still highest in the most populous category of mutual funds in India. The fund does not aim to deliver exponential returns, in fact, investors do not expect the fund to provide the highest gains in the category. Just a decent uptick over the benchmark and category average is enough to impress the type of investors that mostly prefer ICICI Prudential Bluechip Fund. It is the most chosen scheme because of the following reasons:-

1. The trailing returns of ICICI Prudential Bluechip Fund have been most consistent among the large-cap category of mutual funds.
2. The fund has an impressive track record of professionally handling the positive and negative market cycles and consistency has been maintained in the long term.
3. The benchmark and category average have been beaten every time in the past.
4. The volatility or standard deviation of the scheme is least in the large-cap category.
5. The expense ratio of the scheme is lower than most of the peers.
6. It is provided and regulated by ICICI Prudential Mutual Fund which is one of the largest players in the asset management business in India.
7. The fund is managed by highly professional and experienced fund managers.

Where Does the Fund Invests?

The secret to maintaining lower volatility lies with the investment strategy of the fund. ICICI Prudential Bluechip Fund is considered as the least volatile pure equity scheme as the investment is done in the stocks with ‘bluechip’ quality. A stock is considered as bluechip if it is of the top 3 companies in a sector. Although, a large-cap stock with a promising prospect and consistent track record with superior management is generally regarded as bluechip stock. Such stocks grow constantly and do not offer higher degrees of fluctuations. The portfolio of ICICI Prudential Bluechip Fund is well diversified and has the influence of 13 different sectors. Growth style of investment is strictly followed and no attention is given to the attractive valuations.

ICICI Prudential Bluechip Fund is the most ideal scheme in India for conservative investors seeking pure equity investments. The fund has also been chosen largely by those investing for the first time as the risk is low and the returns are consistent. The fund has performed well under every market condition and can be trusted for long term investments. It is the most chosen actively managed scheme in the large-cap category and holds the respect of being the most consistent performer.

Read the article to know why investors with low-risk appetite are comfortable investing in ICICI Prudential Bluechip Fund.