By Ashish Kyal –
We always try to estimate the years of Life we expect to live and plan accordingly. As per research, the Life Expectancy of humans have reduced from 85 to 75, on an average basis. But in comparison to that, the Retirement age is also reducing gradually. So there are less number of years left to accumulate for the Retirement corpus.
Thus, if we calculate as per the retirement age of 60, approximately, our Retirement kitty needs to work in the way that it provides regular income for next 25 to 30 yrs. The regular source of income and the income generated, stops at retirement but the expenses and the Inflation Rate continues to grow longer and larger. Inflation erodes the Real Income from the retirement corpus.
We need to find a source that in which the Retirement Corpus continues to grow and compound in value that it fights inflation. Here, comes the Equity, where you can expect such returns, when invested in long term.
ICICI Prudential Value Discovery Fund: Daily Chart
ICICI Prudential Value discovery fund is an open ended diversified equity fund, which aims at stock which are available at a discount to their intrinsic value through a process of ‘discovery’ this process is called as Fundamental research. This process involves indentifying companies that are well managed, fundamentally strong and are available at bargained price.
Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most favored sector for this fund as it is contributing 18.22% to the entire portfolio followed by Automotive and Technology Sector. Top Holdings and Sector Allocation for this fund are shown below –
Risk Profile: The risk is moderate in this fund as the investment is diversified among various assets. Average returns can be expected from this fund as the corrective phase of the market looks to be complete now we need to wait for prices to confirm. Investors looking forward for good returns with moderate risk should consider this fund for investments in staggered fashion or through SIP route.
In a nutshell, corrective action in this fund looks to be complete so investments in staggered fashion is advisable and SIP should turn out to be the best way as it will provide excellent cost averaging opportunities.
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