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ICICI Pru Banking & Financial Services Fund Multiplied Wealth 6 Times In 9 Years

NDTV logo NDTV 22-08-2017

ICICI Prudential Mutual Fund's Banking and Financial Services Fund has multiplied investor's wealth by more than 6 times in last nine years. The fund, which invests in companies in the banking and financial services sector only, has delivered a compound annual growth rate (CAGR) of 22.43 per cent (as on July 31, 2017) since its inception on August 22, 2008. It means an investment of Rs 16.4 lakh made in this fund on August 22, 2008, has become more than Rs 1 crore by July 31, 2017. Investors' money has doubled in every 3.2 years in this fund.

ICICI Prudential Banking and Financial Services Fund, which had an asset under management of over Rs 2,400 crore as on July 31, 2017, has been rated five-star by Value Research, which mean on a risk-adjusted basis, the fund is one among the top ten per cent funds in in India. Morningstar India also rates the fund five-star.

ICICI Prudential Banking & Financial Services Fund is an open-ended equity sectoral fund that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. ICICI Prudential, the asset management company, says India's banking sector holds tremendous long-term opportunities due to low penetration and rising income. "More people will be entering the banking system, and the financial sector will see expansion through new age sectors like Insurance, mutual funds, stock broking and wealth management," ICICI Prudential Mutual Fund said on its website.

The fund adopts a "buttom-up" strategy, to identify and pick its investment across market capitalizations. One can start investing in this fund with a corpus of as low as Rs 5,000. The fund has both dividend and growth option and also have a direct plan, which is meant for investors who want to invest in the fund without any intermediary. The direct plan delivers higher return than the regular plan.

Risks: Sectoral funds are comparatively riskier than diversified funds and returns can swing widely on either side.

Disclaimer: Investors are advised to make their own assessment before acting on the information.

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