Last Updated on December 29, 2021 at 12:07 pm
ICICI Prudential Focused Bluechip was launched in May 2008 right in the middle of the 2008 meltdown Armed with a lean AUM and 20-twenty stock mandate, the management could navigate the crisis well and soon became the darling of both the sales and investment community. Here is why the going will be tough for this (and other large cap funds).
The main reason I am writing this post is because I wanted to test a new feature to the monthly fund screeners. As many know, I use rolling returns over 3.4 and 5 years. I count the total no of such returns and find out how many among these the fund beat the index.
Suppose we find the fund beat the index 600/700 times when a 3-year window is considered. That is good, but the 100 poor returns could have come just in the last year. Meaning a dip in performance. So besides finding overall return outperformance consistency, we could compute this in 2018, 2017, 2016 etc. This slices the performance window finer. This is still experimental, and I thought I would share numbers for ICICI Prudential Bluechip Fund in this post.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
ICICI Prudential Bluechip Fund: Background
ICIC Bluechip fund is among the Five Large Cap funds have comfortably beat Nifty 100! Unfortunately, the reason for this is not flattering. Prior to the SEBI categorization rules defined large caps as the top 100 in terms of market cap, this fund (and others) could pick stocks from the top 200 (meaning 100 midcaps as per current definition). It also had a nice and easy Nifty 50 as the benchmark to beat. Now it can only pick 80% of stocks from Nifty 100.
When it started out, it has 20 stock mandate and the outperformance even with respect to Nifty 100 was huge. However, it had a clause that the number of stocks could increase when the AUM grew higher than 1000 crore. The fund kept the portfolio down to 20 stocks until Dec. 2011 at about 3000 Cr AUM levels.
- Go to the Value Research fund page
- In the performance tab, select 3 years and scroll the horizontal bar all the way to left (since inception)
- Now move the bar right. The 3 year window will move forward in time.
- Notice the performance and the from date. The performance when the from-date was before Jan 2012 is higher
- After that, the outperformance wrt Nifty 100 has dropped significantly because the no of stocks kept increasing as the AUM swelled.
Now, although I cannot for say for sure, it is fair enough to suspect performance dropped when the portfolio got diluted and the fund became more and more largecapish. That is from Nifty 200 to Nifty 100 ( or 50)
Slicing the rolling returns (as on Jan 9h 2019)
One year periods: The fund has beat Nifty 100 TRI 1079 out of 1219 times.
Two year periods: Fund beat Nifty 100 TRI 890/971 times
Three year periods: 726/727 times
Four year periods 481/481 times
Five year periods 239/239 times
That is spectacular.
If we look at the 3Y periods more closely:
Between 2013 to 2016: The fund had a 100% outperformance record. It beat Nifty 100 TRI all 247 times.
Between 2014 to 2017: Again 100% outperformance, all 241 times
Between 2015 to 2018: Pretty much 100% 238/39 times. So that is practically spotless.
For these windows, one can also find out the number of times, ICICI Bluechip fund return was 10% higher than the index
Between 2013 to 2016: It was always 10% higher!
Between 2014 to 2017: It was always 10% higher!
Between 2015 to 2017, it was 10% higher 147 out of 239 times. So 61%.
This piece of data the visual exercise suggested above seem proof enough that
I will improve the slicing mentioned above. If you have any ideas let me know
Existing investors
Hold and continue to invest as long personal performance is satisfactory.
New investors
Give this fund a miss. Want alternatives? Pick from My Handpicked Mutual Funds January 2019 (PlumbLine)
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)