ICICI Prudential Flexi Cap Fund's Portfolio and Holdings

The ICICI Flexi Cap Fund is a type of mutual fund that falls under the #flexicap category, allowing it to invest across companies of different market capitalizations, including large, mid, and small-cap stocks. Managed by #ICICI Prudential Mutual Fund, one of India's leading mutual fund houses, the fund aims to provide #investors with long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities.

Investment Strategy

The investment strategy of the #ICICIFlexiCap Fund, which involves a blend of top-down and bottom-up approaches, is a comprehensive method for selecting stocks. This dual approach combines the strengths of both macroeconomic analysis and individual company analysis to make investment decisions.

Here's how each approach contributes to the fund's strategy.

1. Top-Down Approach

This aspect of the strategy starts with the macroeconomic environment, looking at the overall economic indicators, market trends, political scenarios, interest rates, and other factors that could affect the entire market or specific sectors. The goal is to identify which sectors or industries are likely to perform well given the current or expected macroeconomic conditions. This approach helps in allocating the fund's assets to the most promising sectors before drilling down to specific stocks.

2. Bottom-Up Approach

After identifying the favorable sectors, the bottom-up approach takes over, focusing on analyzing individual companies within those sectors. This involves a detailed examination of a company's fundamentals, such as its financial health, business model, competitive advantage, growth prospects, management quality, and valuation. The aim is to find undervalued companies with strong growth potential or stable companies at a fair price, regardless of the broader market movements.

ICICI Flexi Cap Fund Allocation Strategy

The ICICI Flexi Cap Fund predominantly invests in domestic equities (97.28%), with a focus on large-cap stocks (54.43%), complemented by investments in mid-cap (16.08%) and small-cap stocks (4.11%), aiming for growth across different market segments. A minimal portion is allocated to debt (0.36%), specifically government securities, to add stability.

This allocation strategy reflects the fund's objective to maximize capital appreciation by primarily investing in equities while maintaining a small portion of debt for stability. The diversification across large, mid, and small-cap stocks enables the fund to capture growth opportunities across the market spectrum while managing risk. The presence of government securities, although minimal, adds an element of safety and income, contributing to the fund's overall risk management strategy.

Investors in the #ICICI Flexi Cap Fund benefit from a diversified portfolio that taps into the growth potential of equities across market caps while maintaining a small cushion of stability through government securities. This strategy is suited for investors looking for long-term growth with a moderate to high-risk tolerance, seeking to benefit from India's economic growth and market dynamics.

Performance of ICICI Flexi Cap Fund

The ICICI Prudential Flexicap Fund has shown a commendable performance recently. As of February 2024, the fund has delivered a 1-year return of 40.15% and an impressive return of 63.70% since its inception. The fund's NAV was reported at ₹16.370 on 24 February 2024.

This fund is managed by ICICI Prudential Mutual Fund, which holds an AUM of ₹13,742.52 Crores as of the end of February 2024, highlighting its substantial size and the trust investors place in it. The fund's strategy of investing across market capitalizations and sectors aims to generate long-term capital appreciation for its investors.

Fund Manager

The ICICI Prudential Flexicap Fund is co-managed by #RajatChandak and #SharmilaD'mello.

• Rajat Chandak has been associated with ICICI Prudential AMC since 2008. He holds a B.com (H) and an MBA, bringing a strong academic background and extensive experience in asset management to the table.

• Sharmila D'mello, also serving as a fund manager, plays a crucial role in the decision-making process for the fund's investments.

Both fund managers are integral to the fund's investment strategy, leveraging their experience and insight to manage the portfolio across various market conditions and sectors to aim for long-term capital appreciation. Their roles involve analyzing market trends, evaluating individual securities, and making buy/sell decisions to achieve the fund's objectives.

ICICI Flexi Cap Fund Portfolio

ICICI Flexi Cap Fund has a diversified portfolio with significant investments in various sectors such as

• Automobile: 21.46%

• Financial: 18.96%

• Services: 13.50%

• Technology: 7.12%

• Construction: 5.27%

• Others: 33.69%

This sector distribution shows a significant emphasis on the Automobile and Financial sectors, indicating a bullish outlook in these areas. The diversification into Services, Technology, and Construction also highlights a strategy aimed at capturing growth across different parts of the economy.

Notable Holdings

Here is a list of ICICI Flexi Cap Fund’s top holdings in different sectors.

TVS Motor Company Ltd.

The allocation of 9.34% to #TVSMotor Company Ltd. within the ICICI Prudential Flexicap Fund's portfolio indicates a significant investment in this company, showcasing the fund managers' confidence in its growth potential and financial health. TVS Motor Company is known for its strong product lineup, extensive distribution network, and robust R&D capabilities. It is one of India's leading two-wheeler and three-wheeler manufacturers.

Such a substantial stake in a single company within the fund's portfolio highlights a focused approach towards companies with a strong market position, brand value, and potential for sustainable growth. By investing in TVS Motor Company, the fund aims to benefit from the company's performance in the automotive industry, which can be influenced by factors like consumer demand, innovation, regulatory changes, and global market dynamics.

Maruti Suzuki India Ltd.

The ICICI Prudential Flexicap Fund's allocation of 8.00% to Maruti Suzuki India Ltd. reflects a significant investment in India's leading automobile manufacturer, known for its dominance in the passenger vehicle segment. Maruti Suzuki is renowned for its wide range of vehicles, strong brand loyalty, extensive dealer network, and after-sales service, which have contributed to its strong position in the Indian automobile market.

This investment underscores the fund's strategy to leverage the growth potential of well-established companies with a solid market presence. Maruti Suzuki's focus on innovation, fuel efficiency, and customer-centric models, coupled with its efforts to expand in electric vehicles and green technologies, presents a promising growth outlook that aligns with the fund's objective of long-term capital appreciation.

ICICI Bank Ltd.

The allocation of 7.27% to #ICICIBank Ltd. in the ICICI Prudential Flexicap Fund's portfolio represents a substantial investment in one of India's leading private sector banks. ICICI Bank is known for its wide range of banking products and financial services, catering to both retail and corporate customers through a variety of delivery channels and specialized subsidiaries. The bank's strong presence in the Indian banking sector, along with its continuous focus on digital innovation, robust asset quality, and comprehensive banking solutions, makes it a key player in the financial services industry.

Avenue Supermarts Ltd.

The allocation of 5.68% to Avenue Supermarts Ltd. in the ICICI Prudential Flexicap Fund's portfolio signifies a considerable investment in the parent company of D-Mart, one of India's largest and most efficiently managed hypermarket chains. Avenue Supermarts is known for its business model focusing on value retailing, offering a wide range of products at competitive prices, and operating a large number of stores across India.

Reliance Industries Ltd.

Reliance Industries is a diversified conglomerate with businesses spanning sectors such as petrochemicals, refining, oil and gas exploration, telecom (Jio), and retail (Reliance Retail). The investment in Reliance Industries is valued at 5.08%. It reflects the fund's approach to diversify across sectors with resilient business models and substantial growth prospects.

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