An open-ended equity mutual fund scheme that makes investments in companies in the large-cap, mid-cap, and small-cap categories is called the ICICI Prudential Multicap Fund – Growth. It helps manage risk and reward because, as a multicap fund, it offers diversified exposure across market capitalizations. When the “Growth” option is selected, dividends are not paid out; instead, the returns are reinvested in the fund, allowing for gradual capital appreciation.
ICICI Prudential Multicap Fund Important characteristics:
Fund Category: Equity Multicap Fund
Fund Type: 1. Direct 2. Regular
Investment Objective:The goal of the investment is to generate long-term capital growth by spreading out investments throughout several market capitalization.
Risk High level:Because of its exposure to equities in multiple market categories, the risk level is high.
Investment Horizon: Appropriate for investors with a long time horizon, usually five years or more.
Minimum Investment: Although it might vary, the minimum lump sum investment is often ₹5,000.
Fund Manager: ICICI Prudential AMC’s seasoned fund managers oversee the fund.
Expense Ratio: Depending on the class of units, this refers to the fees the fund charges you for managing your investments.
Multi Cap fund: The fund invests 89.65% of its total domestic equity in large-cap companies (36.24%), mid-cap stocks (22.42%), and small-cap stocks (14.83%).1.5% of the fund’s assets are in debt, of which 1.5% are in securities issued by the government.
Appropriate for: Investors seeking high returns who plan to invest for a minimum of three to four years. These investors should also be prepared for the risk of suffering modest losses on their investments at the same time.
ICICI Prudential Multicap Fund Allocation:
Return on Investment if you invest Rs.10,000/- Since Inception
Return on Investment if you invest Rs.1,000/- Since Inception
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| ICICI Prudential Multicap Fund |
Sectoral Fund Allocation
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| ICICI Prudential Multicap Fund |
Tax Implication
Long-term capital gain tax will be imposed on sales made after a year from the date of purchase. If your total long-term capital gain surpasses 1.25 lakh, the current tax rate is 12.5%. There is no cess or surcharge added. Short-term capital gain tax will be charged on sales made before the first year from the date of purchase. The tax rate as of right now is 20%. The 20 percent does not include any cess or tax.
ICICI Prudential Multicap Fund Advantage
Diversification: The fund offers exposure to a broad range of industries and market capitalizations by distributing its investments among large-cap, mid-cap, and small-cap businesses. This diversification minimizes risk and takes advantage of opportunities in several market niches.This is the Icici Principal Digital Fact Sheet for Value Research.
Flexibility: Multicap funds, as opposed to other funds limited to particular market caps, have the ability to change allocations in response to market conditions, giving them more freedom to balance risk across market segments and maximize returns.
Robust Performance History: With the support of seasoned fund managers and a strong track record of performance, the ICICI Prudential Multicap Fund has consistently produced long-term gains. Since its launch, it has shown remarkable returns of more than 18%.
Skilled Fund Management: The manager of the fund is expertise in the financial Sector.
ICICI Prudential Multicap Fund Disadvantage:
High Risk: Due to its exposure to small-cap and mid-cap equities, this equity-focused multicap fund is by nature high-risk. When compared to large-cap companies, these market segments are typically more volatile.
Market-Dependent Performance: The fund’s returns are extremely susceptible to changes in the market, particularly when small and mid-cap equities are more severely impacted than large-cap stocks during downturns. Consequently, investors who are risk averse may be concerned about short-term volatility.
Ratio of expenses: Compared to index funds or other low-cost investing options, it has a higher fee ratio of about 1.75%, which might reduce long-term returns, especially for big investments.
Long-Term Investment Requirement: Investors usually need to stay involved for a long time (5+ years) in order to fully benefit from the fund’s growth potential. Perhaps short-term investors won’t be able to because of market volatility, short-term investors might not be able to completely profit from its gains.
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