Which Mutual Funds will get thumbs up in 2016?

We have been bullish on Indian equity markets since the start of 2016 and today’s rise has given a ray of hope to the start of the bull trend. However, this scenario is not confirmed yet from long term perspective but one thing is sure that now we are going to see many surprises on upside.  To participate in this trend there are not much hurdles and mutual funds are a great source as the risk associated with them is lower than direct exposure to Indian Equity markets. For this year we have shortlisted a few funds which would stand strong to our expectations and the below mention is one of them.

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.

ICICI Prudential Value Discovery Fund – Daily Chart:

ICICI Prudential Value Discovery Fund 20160301

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 Capital Goods & Automotive sector. Top Holdings and Sector Allocation for this fund are shown below.

Top holdings, sector and returns 20160301

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 once the corrective phase of the Indian market completes. 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 can continue towards 38.2% retracement zone. However investments in staggered fashion is advisable and SIP should turn out to be the best way as it will provide excellent cost averaging opportunities.

Recommended Posts

Leave a Comment