The Dividend Yield Equity Fund is a long term investment that allows for wealth creation through investments in companies that are performing well. This fund offers opportunities for investments in lump sums as well as monthly instalments (SIPs). It also offers systematic withdrawal plans through which units can be withdrawn at regular intervals. It also does not charge any entry loads and has over Rs. 300 crore in assets under management. While the lion's share of the investments are made in the equity markets, a small amount is also invested in short term debt instruments.
Type or nature of fund
This is an open-ended equity fund.
Investment objective
The aim of this fund is to help create wealth over a long term through investments in the equity markets. These investments are made primarily in stocks that a performing well and can invest in small, mid and large cap stocks.
Fund information
| Inception date | 16 May 2014 |
| CRISIL rank | This product has not been rated by CRISIL |
| Plans | Regular and Direct |
| Options |
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| Schemes |
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| Entry load | Nil if investment is done through ICICI Prudential. If investments are done through certified distributors then a commission may be payable to the distributor. |
| Exit load | 1% of the NAV if units are withdrawn within 1 year of allotment. |
| Minimum investment |
|
| SIP | Available |
| Product label |
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| Benchmark | CNX Dividend Opportunities Index The CNX Dividend Opportunities Index uses the free floating market capitalization method to calculate performance. It covers 50 companies listed on the NSE, all of which are in the top 300 list according to their free-float market capitalization and their turnover. |
| SWP | Available |
| STP | NA |
| Redemption | The minimum amount that can be redeemed is Rs. 500 with increments in multiples of Re. 1. |
Fund manager(s)
Mrinal Singh
- Education: BE and PGDM Past experience:
- Fund Manager (AVP), ICICI Prudential AMC Ltd.
- Senior Manager, ICICI Prudential AMC Ltd.
- Manager, ICICI Prudential AMC Ltd.
- WIPRO Ltd
- Robert Bosch GmbHMotor Industries Co Ltd.(MICO),Bangalore
- Other funds managed
- ICICI Prudential Technology Fund
- ICICI Prudential Midcap Fund
- ICICI Prudential Value Discovery Fund
- ICICI Prudential Advisor Series
- ICICI Prudential value Fund – Series 4
- ICICI Prudential value Fund – Series 5
Vinay Sharma
- Education: MBA from IIM Calcutta and CFA from AIMR USA
- Past experience:
- ICICI Prudential Asset Management Limited – PMS Fund Manager
- ICICI Prudential Asset Management Limited – Equity Analyst
- AIG Global Asset Management India Limited - Equity Analyst
- J.P.Morgan India Private Limited - Equity Analyst
- Other funds managed
- ICICI Prudential Dividend
- Yield Equity Fund
- ICICI Prudential FMCG Fund
- ICICI Prudential Select Large Cap Fund
- ICICI Prudential Multiple Yield Funds
- ICICI Prudential Capital Protection Oriented Funds
- ICICI Prudential Growth Fund Series 2
- ICICI Prudential Growth Fund Series 4
- ICICI Prudential Growth Fund Series 5
- ICICI Prudential Growth Fund Series 6
- ICICI Prudential Banking and Financial Services Fund
Ashwin Jain (Overseas investments)
- Education: B.E and PGDM
- Past experience:
- Merill Lynch as Senior Analyst
- Irevna (part of the Standards and Poor’s Group) as Research Analyst
- HCL Technologies as Software Engineer
- Other funds managed
- ICICI Prudential Growth Fund – Series 3
- ICICI Prudential Balanced Advantage Fund
Investment philosophy or strategy
The philosophy followed for the investments in this scheme is that of investing in a diversified portfolio to provide long term capital gains. To achieve this objective, the fund may invest in the stocks of companies that have a proven track record of good performance.
Portfolio (As of June 2015)
| Company/Sector | Investment |
Banks
|
30.84% |
Software
|
15.09% |
Auto
|
11.15% |
Chemicals
|
6.25% |
Pharmaceuticals
|
5.63% |
Consumer Non Durables
|
4.24% |
Transportation
|
3.47% |
Industrial Products
|
3.03% |
Media & Entertainment
|
2.83% |
Finance
|
2.72% |
Risk measures
|
Sharpe ratio |
0.61 |
|
Alpha |
|
|
Portfolio beta |
0.86 |
|
Std deviation |
12.02% (annual) |
Performance
| AUM | Rs. 316.11 crores (As of 30 June 2015) |
| NAV (As of June 30, 2015) |
|
| Expense ratio |
|
Returns
| 2014-2015 (Absolute Returns) | 2013-2014 (Absolute Returns) | 2012-2013 (Absolute Returns) | Compound Annual Growth Rate (Since Inception) | |
| Scheme | 7.10% | - | - | - |
| NIFTY | 9.95% | - | - | - |
| NAV (in Rs.) | 11.13 | - | - | - |
Expert view of the fund
This fund is fairly new, having been launched in 2014 and has provided returns of up to 7% in its first year. It projects an indicative investment horizon of 5 years and provides returns through investments in stocks of companies that are known to perform well. Even though it is primarily an equity fund, it does invest a small amount in short term debt instruments while the largest investment, according to the portfolio is of 30% in the banking sector.
How to apply
For those who want to invest in this fund there are two options. The first option is to invest in it offline, where they can approach ICICI Prudential branches to help guide them with the application process. They will also get help with filling out the appropriate forms and understanding the fund better. This scheme can also be taken through a certified distributor.
For those who prefer the online option, ICICI Prudential also has facilities to provide online investments. Visitors to their site can invest from the website itself once they have created an account. Online investment facilities are available for both new and existing investors. The payments for both offline and online investments can be made via NEFT/RTGS transfers, debit cards, cheques or demand drafts.
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