- Date : 21/07/2022
- Read: 3 mins
ICICI Prudential Mutual Funds outperform in volatile markets!
The last year has been weak for the markets. The stock markets have given lacklustre returns across. The benchmark Sensex in the last year ending on 20th July has only given a 4.85% return. If you consider small-caps and midcaps, the returns are even lower.
The returns across various indices are:-
The reasons for the market downturn include the Russia-Ukraine war, high inflation, an increase in interest rates by Central banks globally, and slowdown after a strong two years in the stock markets. These reasons have depressed the stock market returns in the last year. But ICICI Prudential Mutual Funds have been outperforming the markets in this time frame, and its seven schemes have returned 13-22% in this time frame.
Related: Focused funds vs Diversified mutual funds: Which one to choose?
ICICI Prudential Mutual Funds top performing schemes
ICICI Prudential Mutual Funds has outperformed the markets in the last year.
The returns of the seven schemes in the last year are as follows:-
The above list is for the Growth and Regular Plans. These schemes have given good returns in the last year. The top performing scheme, ICICI Prudential FMCG Fund, returned 22.29% last year. For the Direct plans, returns might be even higher. This kind of return in the mutual funds keeps the investors happy with the performance. Identifying mutual fund schemes with consistent performers can help you get market-beating returns.
The reason for the outperformance of ICICI Prudential Schemes is that they focused on value stocks, and they are following a value strategy to identify the market outperformers. As per the fund manager, S.Naren, the decisions he took last year proved to be the reason for the success. The fund is overweight on the Power and Utility sector. The sector was an underperformer in the last decade, but in the last year, the sector has performed well. ICICI Prudential was able to correctly identify the outperformance potential of the sector. Also, the fund house has reduced exposure in the underperforming metals sector and increased the exposure in the outperforming FMCG sector.
Related: Here's an infographic to help you choose between Growth option vs Dividend option in Mutual funds
ICICI Prudential has been an outperformer in the last year. The volatility in the stock markets, which started with the Russia-Ukraine war and increased with the rising inflation, has kept investor returns low in the past year. But if you were invested in these ICICI Prudential Mutual Fund schemes, you would be laughing all the way to the bank.
Test your knowledge of mutual funds by taking up this quiz - How much do you know about investing in mutual funds?
;
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
