ICICI Prudential US Bluechip Equity Fund - Review

1. ICICI Prudential US Bluechip Equity Fund -Review • Globalization has brought in with itself a lot of changes – in our lifestyle, food preferences, career opportunitiesandmanymore.Ithasalsoseepedintoourfinancialplanningandinvestments. • International Mutual Funds are a great example of the same. It has provided a channel for investors to benefit from internationalinvestments. • What are International MutualFunds? • These are a type of equity mutual funds which invest only in stocks of companies listed outside the investor’s home country (in our case India). These funds entered the Indian market in the year 2007. In the recent past, they have come up as a lucrative investment option with their offer of diversification - currency as well as geographical. Their growing demand also has a direct relationship with the high volatility in the domestic markets and a sluggish economy. In this article, we will review one of the funds from this category - ICICI Prudential US Bluechip EquityFund. • FundDetails • ICICI Prudential US Bluechip Equity Fund is an open-ended International Mutual Fund from the house of ICICI Prudential – one of the leading AMCs in the country. This fund invests in stocks (and equity-related instruments) of firms which are listed on recognized US stock exchanges (NASDAQ and/or New York Stock Exchange). It also invests in ADRs (American Depository Receipts) or GDR (Global Depository Receipts) issued by foreign as well as Indian companies. Due to its high equity exposure, the fund is classified under “High” riskcategory. • In terms of market capitalization, as its name suggests, the fund has a strong preference for large-cap or blue-chip stocks, selected primarily from the S&P 500 universe. These companies have a market capitalization of at least USD 4 Billion, as on the date ofinvestment. • Keyfeatures • Fund Start Date – 6th July2012 • Fund Size – Rs. 437.42 crores (as on 31st Dec2019) • MinimumInvestment • Application amount – Rs.5000 • Subsequent investment – Rs.1000 • Redemption • At least Rs. 500. In case if the amount is less than Rs. 500, then allunits. • SchemeOptions • Growth • Dividend • (Re-investment facility isavailable) • Stock SelectionCriteria

2. ICICI Prudential US Bluechip Equity Fund seeks to generate long-term capital appreciation. It applies a combination of a top-down and bottom-up approach in its stock selectioncriteria. It invests in companies that have a durable competitive advantage over the other players. Many of them are market leaders globally and renowned brands. These companies may also have their presence in India but are not listed on the Indian stockexchanges. SectorAllocation There is no specific sector preference. Currently, the top three sectors in the portfolio include healthcare (25.6%), Technology (18.49%) and FMCG(12.43%). FundManager The fund is being managed by Ms Priyanka Khandelwal and Mr RohanMaru. Performance The scheme has generated a CAGR of 16.83% since its inception. In absolute terms, the current value of Rs. 10,000 invested in 2012 would be Rs. 32,060. The returns across different timeframes and in comparison with the benchmarkare: (*Benchmark is S&P 500Index) FinalWords This international mutual fund is ideal for investors who want to invest in stocks from the US market and which are not listed in our country. The fund can help investors (with an investment horizon of at least five years) to benefit from diversification. Stable or solid returns from the international market will help in supporting your overall portfolio especially when faced with rupee depreciation or below-par performance of the primary or domesticmarket.