ICICI Prudential Target Returns Fund

ICICI Prudential Target Returns Fund is managed by an experienced manager Yogesh Bhat. The fund seeks to generate capital appreciation by investing in companies constituting the BSE 100 index, which is also the benchmark for the fund. The fund follows a bottom-up approach where the companies are selected on the basis of their financial strength, proven business model, competitive edge, asset base and valuations. If you have invested in this fund keep close watch on performance. 

Where does ICICI Prudential Target Returns Fund invest your money?

ICICI Prudential Target Returns Fund is a large cap fund which means most of your money will be invested in large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. It has 94.1% exposure to large sized companies and 5.9% exposure to mid sized companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home purchase
Not suitable for what?
  • Creating wealth
  • Short term needs
  • Lifestyle needs
How has ICICI Prudential Target Returns Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in May 2009, your value of investments would be around Rs 1.44 lakhs. The performance has been similar to that of the other large cap mutual funds. 

Assume you had invested Rs 10,000 every month in ICICI Prudential Target Returns Fund through SIP for the past 5 years today you would have around Rs 5.11 lakhs. 

How will ICICI Prudential Target Returns Fund 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 follow 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%. 

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. You can make ICICI Prudential Target Returns Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
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?

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 Target Returns Fund is 2.84%. 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.

Better alternatives for core portfolio

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


Explore more in a easy manner.


Table of Contents

Table of Contents