ICICI Prudential Banking and Financial Services Direct Plan-Growth is the ICICI Prudential Mutual Fund-launched equity mutual fund scheme. The scheme for investors was launched on 01 January 2013. Roshan Chutkey is the operating fund manager of ICICI Prudential Banking and Financial Services Direct Plan-Growth. The fund currently holds ₹3,615 Cr of Asset under Management (AUM) and is the latest NAV as of 24 Feb 2020 is ₹73.31.
It is a mutual fund focused on investing in the banking and financial services industry. It can invest up to 70 percent in banks and up to 25 percent in NBFCs. It also provides an opportunity for investors to make money in the long term. It includes facilities such as 0 entry load, systematic investment planning, systematic withdrawals, and transfers. Investment in this fund can be made in a lump sum or monthly/quarterly installments.
ICICI Prudential Banking and Financial Services Direct Plan Growth has been rated as high risk. The minimum SIP investment is 500. The minimum Lumpsum Investment is 5000. If you redeem the units within 15 days the exit load will be 1%.
ICICI Prudential Banking and Financial Services Direct scheme return performance
- 18.65%, in the last three years
- 42.60% and 213.43% since the scheme launch
- The SIP amount to invest in this scheme is ₹100.
ICICI Prudential Banking and Financial Services Direct Plan-Growth scheme Investment Objective
It is an open-ended equity scheme, which seeks to generate long-term capital appreciation for unitholders from a portfolio invested primarily in equity and equity-related securities of companies held in banking and financial services. However, there can be no certainty that the investment objective of the scheme will be realized.
Tax Implications of ICICI Prudential Banking and Financial Services Direct Plan-Growth scheme
There is a 15% tax on the return if you redeem one year in advance. You have to pay a 10 percent LTCG tax on 1 lakh + return in a financial year after one year.
Pros and Cons of this scheme
- One year returns are higher than the benchmark
- Risk is higher compared to the benchmark
- Three years of returns are lower than the benchmark
- Five years of returns are smaller than the benchmark
ICICI Prudential Banking and Financial Services Direct Plan-Growth Scheme Strategy
The investment philosophy of this fund is mainly to invest in the banking sector. It will also designate large amounts of financial services sector investment and a small amount for short-term debt instruments. The fund adopts a bottom-up strategy to take stocks for investment.
Conclusion: It is a fund that offers investors a high-risk investment opportunity. It is also for those who want to generate wealth, and who are okay with the risk factor. As regards returns, the fund steadily improved the Nifty between 2013 and 2015, over the same period; it also outperformed its benchmark, especially in 2013-14, where it delivered full returns of 46 percent over returns against a benchmark of 32%.
