If you are planning a long-term investment in mutual funds and are looking for a fund that can give returns of crores over time, then ICICI Prudential Multicap Fund can be a strong option for you. This is the oldest scheme of ICICI Prudential Mutual Fund House, which was launched in October 1994.
So far, this fund has given such strong returns to investors that if you had started a SIP of Rs 10,000 in it 30 years ago, then today its value would have been around Rs 9.8 crore. At the same time, if you had invested Rs 1 lakh in lump sum, it would have increased to Rs 79 lakh.
ICICI Prudential Multicap Fund is a multicap category mutual fund which was launched on 1 October 1994. The fund aims to generate capital appreciation by investing in large, mid and small cap stocks across sectors. However, this objective is not guaranteed to be achieved every time.
The current asset size of this fund is Rs 15,094.86 crore, and its expense ratio is 1.74%, which is lower than the category average of 1.96%. The fund follows Nifty 500 Multicap 50:25:25 TRI as its benchmark.
ICICI Prudential Multicap Fund returns over the years:
| Since Launch | 15.28% (Lump Sum Return) |
| SIP Return (Since Launch) | 17.71% |
(Source: Value Research)
This fund has made investors crorepatis by giving great returns in the long term. For example, if an investor had run a monthly SIP of Rs 10,000 in this fund for 30 years, his investment would have reached around Rs 9.8 crore.
On the other hand, if someone had made a lump sum investment of Rs 1 lakh in October 1994, its value would have become around Rs 79 lakh today.
These figures clearly show how disciplined and long-term investment can create a large corpus through mutual funds.
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ICICI Prudential Multicap Fund: Risk measures
| Risk Parameter | What It Means | Value (3-Year) |
|---|
| Alpha | How much the fund outperformed the benchmark | 5.37 (Very good) |
| Beta | How sensitive the fund is to market volatility | 0.90 (Slightly lower risk than market) |
| Tracking Error | How much the fund’s returns deviate from the benchmark | 3.33 (Low – a good sign) |
| Sharpe Ratio | How much return is generated per unit of risk taken | 1.16 (Above 1 = Good return-to-risk) |
| Standard Deviation | How much the fund’s returns fluctuate | 13.41 (Moderate risk) |
(Source: Fund’s fact sheet)
ICICI Prudential Multicap Fund’s asset allocation is primarily concentrated in equities, with a total of 94.08% invested in the stock market. Apart from this, 5.82% is kept in cash, while there is no investment in bonds and 0.10% allocation in other categories.
ICICI Prudential Multicap Fund portfolio allocation
The fund’s top 10 stock holdings include large and trusted companies like ICICI Bank, Reliance Industries, HDFC Bank, Axis Bank, Sun Pharma, Hindustan Unilever (HUL), Infosys, Larsen & Toubro (L&T), NTPC and SBI. A total of 31.69% investment has been made in these top 10 stocks. The fund invests in a total of 104 companies, thereby maintaining a well-diversified portfolio.
Also read: Top SBI mutual fund: THIS scheme turned Rs 1,000 SIP into Rs 57 lakh, Rs 1 lakh grew over 42 times
Summing up…
ICICI Prudential Multicap Fund is ideal for investors who want to build a good corpus by investing in equities for the long term. This fund has not only been delivering stable and strong returns but has also proven to be reliable in terms of risk-management. If you are planning a SIP or lump sum investment for the next 10-20 years, this fund can be a strong contender.