Monday, August 6, 2012

ICICI Prudential Discovery Fund

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Call 0 94 8300 8300 (India)

 

Value stocks deliver good returns in the long term as these are fundamental stories which take time

to materialise. Hence, this fund is recommended to long term investors. And it is preferable if they

invest through the systematic investment plan (SIP) route

 

In the last five years the fund has maintained its exposure to the Pharmaceuticals sector. It has remained invested in technology and auto ancillary sectors. These bets have proved to be very lucrative for the fund. At present, the fund has close to 44% of its holdings dedicated to these sectors. Select companies in these sectors, which are defensives and have a strong business model, have helped in lifting the performance of the fund even in falling markets. It has beaten its benchmark on a consistent basis. The fund is currently avoiding public sector banks due to deterioration in asset quality. Besides picking value stocks, the fund also believes in picking up contrarian and special situation stocks companies which may not be performing due to regulatory hurdles or external factors though their businesses are sound. In present markets, it is a good strategy.

 

Happy Investing!!

 

We can help. Call 0 94 8300 8300 (India)

 

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                        OR

You can write back to us at prajnacapital [at] gmail [dot] com

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