Introduction
In the stock market, you can either invest in equity funds, debt funds, or a combination of both, a hybrid fund. With a hybrid fund, you can reap the rewards of equities, while protecting yourself from market fluctuations by investing in debt securities. These types of funds invest mostly in equities and related instruments, with a balance in debt securities.
A popular open-ended hybrid scheme is the ICICI Prudential Equity and Debt Fund. A major objective of the ICICI fund is to help investors reach their long-term goals.
Did you know that a mutual fund calculator can help you decide whether a fund is right for you? You can easily calculate the returns and capital gains on your mutual fund investments from the comfort of your own home.
Let us now take a closer look at the ICICI hybrid scheme.
ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund is one of India’s leading fund houses. With more than two decades of experience in fund management, the company aims to create long-term wealth for its investors. Through its 68 mutual fund schemes, the company offers its investors a wide range of investment options.
What are the objectives of the scheme?
Here are the objectives of the ICICI Prudential Equity and Debt fund:
- To generate long-term capital appreciation for its investors by investing in equity and related securities as well as fixed-income securities.
- To help investors build current income and achieve their long-term goals.
Who are the fund managers of the scheme?
- Sankaren Naran, a leader in the Indian Capital markets, has over 29 years of experience in developing investment strategies.
- Mittul Kalawadia, with over 13 years of experience in portfolio management and security analysis, has been a key research analyst for multiple key sectors.
- Manish Banthia has over 16 years of experience in the Indian Capital markets. Portfolio management, credit research and rates trading are some of his key core competencies.
- Nikhil Kabra, with over 6 years of experience in equities, is a co-manager of 7 funds.
- Sri Sharma has over 4 years of experience in the mutual fund industry.
What are the asset allocations and holdings of the fund?
Here is the breakup of the fund’s investment portfolio.
- Summary of allocations
| S.no | Type of Asset | Allocation percentage |
| 1 | Equities and related instruments | 70.26% |
| 2 | Cash and Cash equivalents | 9.75% |
| 3 | Debts | 19.99% |
- Allocations in different stocks, as per market capitalizations
| S.no | Type of stocks | Allocation percentage |
| 1 | Giant and Large-cap companies | 85.81% |
| 2 | Mid-cap companies | 10.42% |
| 3 | Small cap companies | 3.77% |
- Allocations of equity percentages in different sectors
| S.no | Type of Sector | Allocation percentage (approx) |
| 1 | Bank | 15.71% |
| 2 | Power | 8.46% |
| 3 | Telecom services | 7.61% |
| 4 | Auto | 7.06% |
| 5 | Software | 5.59% |
| 6 | Oil | 5.58% |
| 7 | Others | 21% |
- Top 5 holdings in this scheme
| S.no | Company name | Holding percentage |
| 1 | ICICI Bank | 8.16% |
| 2 | NTPC | 8.12% |
| 3 | Bharti Airtel | 7.61% |
| 4 | Oil and Natural Gas Corporation | 4.95% |
| 5 | Tata Motors | 4.08% |
How to invest in this fund?
To invest in this fund, you must know the following details:
- The minimum purchase application amount for the scheme is, Rs 5000 and any additional investment will be a minimum of, Rs 1000, in multiples of Re1.
- When you opt for the Systematic Investment Plan (SIP), you can invest daily, weekly, fortnightly, monthly, or quarterly. If you wish to invest quarterly, the minimum amount is Rs5000, in multiples of Rs1. For any other frequency mode, the minimum investment is Rs100, in multiples of Re1.
- If you are opting for a Systematic Withdrawal Plan (SWP), you can invest any amount.
- If you choose the Systematic Transfer Plan (STP), you can invest daily, weekly, monthly or quarterly. The minimum investment for daily frequency is Rs250, in multiples of Re1. All other frequencies require a minimum investment of Rs1000, in multiples of Rs1.
- The ideal investment horizon for the scheme is a minimum of 3 years.
What is the load structure of the fund?
- There is no entry load in the scheme.
- There is no lock-in period for the scheme.
- For exit load:
| Particulars | Exit load |
| For units, in excess of 10% of the investment, if redeemed within 1 year | 1% |
Recent updates about the fund
- The fund has 2 options: Growth and Dividend(IDCW). Further, these can be divided into 10 categories. Here are the different funds and their respective Net Asset Values:
| S.no | Category | NAV as of April 28, 2022, |
| 1 | Annual IDCW | Rs 20.64 |
| 2 | Growth | Rs 227.99 |
| 3 | Direct Plan Half-Yearly IDCW | Rs 22.09 |
| 4 | Monthly IDCW | Rs 30.31 |
| 5 | Direct Plan Annual IDCW | Rs 21.94 |
| 6 | Annual IDCW Payout | N/A |
| 7 | Direct Plan Annual IDCW Payout | N/A |
| 8 | Direct Plan Monthly IDCW | Rs 44.72 |
| 9 | Half-Yearly IDCW | Rs 20.51 |
| 10 | Direct Plan-Growth | Rs 248.26 |
- Fund performance
| S.no | Particulars | Return % |
| 1 | Since Inception | 14.94% |
| 2 | 1yr | 36.33% |
| 3 | 3yrs | 19.22% |
| 4 | 5yrs | 14.89% |
In a nutshell
This article gives you a detailed overview of ICICI Prudential Equity and Debt fund. The fund is carefully designed to create long-term wealth for investors. However, before choosing any fund, it is important to do thorough research. For any queries or doubts, you can always consult a financial advisor.
Sources
https://www.icicipruamc.com/mutual-fund/hybrid-funds/icici-prudential-equity-debt-fund
https://economictimes.indiatimes.com/icici-prudential-equity-debt-fund/mffactsheet/schemeid-686.cms
https://www.policybazaar.com/funds/articles/icici-equity-and-debt-funds/