ICICI Prudential Dynamic Plan

ICICI Prudential Dynamic Fund is managed by Sankaran Naren and Mittul Kalawadia. Coming from the stables of ICICI Prudential AMC, this fund has had an impressive track record. Despite the name the fund has maintained a stable investment style and generated steady returns. This is a good fund to hold on to for the long term.

Where does ICICI Prudential Dynamic Plan invest your money ?

ICICI Prudential Dynamic Fund is a large and mid cap fund which means most of your money will be invested in stocks of large and medium sized companies. About 64.98% of the fund’s money is allocated to stocks of large companies, 25.88% to stocks of mid size companies and 9.14% to those of small companies. Mid size stocks can give kicker returns as they turn into large stocks but this happens not so frequently. Large cap companies tend to be stable compared to mid cap and small cap companies. 

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has ICICI Prudential Dynamic Plan performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Oct 2002, your value of investments would be around Rs 11.62 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.43 lakhs. The performance has been better than other large cap mutual funds. The fund has been giving around 7.53% returns to those who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in ICICI Prudential Dynamic Fund through SIP for the past 5 years today you would have around Rs 8.12 lakhs.

How will ICICI Prudential Dynamic Plan perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make ICICI Prudential Dynamic Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and make up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. ICICI Prudential Dynamic Fund can be part of your satellite portfolio.

Our recommendation for fresh investment
Our recommendation for existing investment
When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10,000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of ICICI Prudential Dynamic Fund is 2.25%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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