Investment Objective
ICICI Prudential Flexicap Fund aims to generate long-term capital appreciation by investing primarily in equity & equity related instruments across market capitalization.
Investment Strategy
- ICICI Prudential Flexicap Fund invests at least 65% in equity and equity related instruments of large cap, multi cap & small cap companies without any market cap or sector bias.
- While the scheme has set BSE 500 as its benchmark index, it is free to invest in companies outside the index.
- The scheme uses a mix of bottom-up & top-down approach to identify stock picking opportunities across the market capitalisation.
- Its stock selection process is based on various factors like macros, valuations, company fundamentals, long term growth prospects, etc.
- The fund maintains adequate capping on stock concentration to ensure diversification.
- It follows an opportunistic approach, i.e., it can increase exposure to large-cap companies to limit downside risk and can similarly increase exposure to mid and small-cap companies to capture their upside potential.
- The allocation across large, mid, and small-cap stocks is periodically assessed and rebalanced.
- For market cap allocation, the scheme takes directional calls based on overall market valuations.
- The fund also uses the in-house market cap model of its fund house to decide its market-cap allocations.
- The scheme also considers various macroeconomic indicators like current account deficit/surplus, fiscal deficit, GDP growth & credit growth, inflation, tax revenues and Capacity Utilization & Corporate Profitability to decide market cap and sector/theme related allocation.
Who Should Invest
- The scheme is suitable for those investors seeking long-term capital appreciation through predominantly equity exposure across market capitalization.
- Those seeking a fund for their core portfolios having high flexibility to move between market capitalisation.