The ICICI Prudential Blended fund is a fund that invests in both equities and debt markets. The equity investments are used to help increase the income from the interest earned from debt instruments and is meant for those looking for a long term wealth creation instrument. It offers investors two plan to pick from where the difference is the amount of the AUM that is invested in the debt markets. Most of the debt investments are made in short term instruments under plan B but in Plan A these investments are mostly in equities.
Type or nature of fund
This is an open-ended fund that can invest in equities and debt markets
Investment objective
The objective of the plan is to provide returns through investments made in the debt markets. It also uses the equity markets to bolster the returns and provide wealth creation solution in the long run.
Fund information
| Inception date | 31 May 2005 |
| CRISIL rank | 3 (A of June 2015) |
| Plans | Regular and Direct |
| Options | Growth and Dividend |
| Schemes |
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| Entry load | Nil. If the scheme is invested in through a distributor then a commission may be payable by the investor to the distributor directly. |
| Exit load | 0.5% if units are redeemed or switched within 3 months of allotment. |
| Minimum investment |
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| SIP | Not Available |
| Product label |
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| Benchmark | CNX Nifty Index CNX Nifty is a free floating market capitalisation weighted index that is also known as Nifty 50 and Nifty. It covers 22 sectors of the Indian economy and is owned and operated by India Index Services and Products. |
| SWP | Not Available |
| STP | Available |
| Redemption | The minimum amount that can be redeemed is Rs. 500 and any amount higher that it needs to be in multiples of Re. 1. |
Fund manager(s)
Kayzad Eghlim (Equity)
- Education: BCOM and MCOM
- Past experience:
- Vice President (Head – Dealing) - ICICI Prudential AMC Ltd
- Associate Vice President (Dealer)– ICICI Prudential AMC Ltd
- Dealer – IDFC Investment Advisors Ltd.
- Manager - Prime Securities
- Canbank Mutual Fund
- Other funds managed
- ICICI Prudential Index Fund
- ICICI Prudential Nifty Junior Index Fund
- SENSEX Prudential ICICI Exchange Traded Fund
- ICICI Prudential Equity – Arbitrage Fund – Equity Portion
- ICICI Prudential Nifty ETF
- ICICI Prudential CNX 100 ETF
Manish Banthia (Debt)
- Education: B.COM, CA and MBA
- Past experience:
- Aditya Birla Nuvo Ltd.
- Aditya Birla Management Corporation Ltd.
- Other funds managed
- ICICI Prudential Equity Arbitrage Fund - Debt Portion
- ICICI Prudential Short Term Plan
- ICICI Prudential Blended Plan A – Debt Portion
- ICICI Prudential Long Term Plan
- ICICI Prudential Gold Exchange Traded Fund
- ICICI Prudential Regular Gold Savings Fund
- ICICI Prudential Child Care Plan – Study Plan – Debt portion
- ICICI Prudential Child Care Plan – Gift Plan – Debt portion
- ICICI Prudential Monthly Income Plan – Debt Portion
- ICICI Prudential MIP 25 – Debt portion
- ICICI Prudential Income Opportunities Fund
- ICICI Prudential Income Plan
- ICICI Prudential Balanced Fund – Debt Portion
- ICICI Prudential Gilt Fund Investment Plan PF Option
- ICICI Prudential Equity Income Fund – Debt portion
Investment philosophy or strategy
The philosophy that is followed by the fund managers is to take complete advantage of both the equity and debt markets by investing in both. The debt market investments can be made to hedge investments in the equity markets. With Plan A, investments in equity markets can also be increased to as much as 75% whereas in Plan B investments in the debt market are limited to short term schemes.
Portfolio
| Company/Sector | Investment |
| Debt Holdings | 28.35% |
| Cash, Call, CBLO & Term Deposits | 18.96% |
Banks
|
11.41% |
Finance
|
12.60% |
Petroleum Products
|
8.17% |
Corporate Securities
|
7.83% |
Pharmaceuticals
|
6.11% |
Auto
|
5.02% |
Cement
|
4.01% |
Consumer Non Durables
|
3.45% |
Risk measures
| Sharpe ratio | 2.02 |
| Alpha | Â |
| Portfolio beta | 0.19 |
| Std deviation | 0.55% (Annual) |
Performance
| AUM | Rs. 654.06 crores (As of 30 June 2015) |
| NAV (As of June 30, 2015) |
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| Expense ratio |
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Returns
| Â | 2014-2015 (Absolute Returns) | 2013-2014 (Absolute Returns) | 2012-2013 (Absolute Returns) | Compound Annual Growth Rate (Since Inception) |
| Scheme | 8.28% | 9.43% | 9.75% | 7.99% |
| NIFTY | 9.95% | 30.28% | 10.67% | 14.76% |
| NAV (in Rs.) | 20.0602 | 18.3310 | 16.7018 | - |
The growth in this fund can be understood better by taking an example. Let us suppose Rs. 10,000 was invested in this fund at the time of its inception. That would mean that today, assuming an NAV of Rs. 10, the value of the original investment would be Rs. 21, 721.5. This is lower than the benchmark for this fund where the original investment would be valued at Rs. 40087.66.
Expert view of the fund
The returns that this fund has provided since launch have been about 7.95%. When it is compared to its benchmark one can see that it has not performed as well as its benchmark but it has provided average returns for moderate risks. It is ideal for someone looking to create wealth without taking too much of a risk and through investments in large cap stocks. It brings the advantages of cash-future arbitrage to investors along with bolstering debt income with income from interests.
How to apply
To apply for the ICICI Prudential Blended fund there are two options. The first is the offline option where investors can approach the ICICI Prudential branch or its distributors for help with investing in these funds. They will be helped with understanding the fund and also with help in filling out the application forms and making the investments. When it comes to payments, they can be made via cheques and demand drafts.
For those who are interest in online investing options, there is the company website where investors can register and start investing in these funds. The payment for online purchase of funds can be done via debit cards, online banking or even NEFT and RTGS transfers.
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