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- ICICI Prudential Flaxi Cap NFO, ICICI Prudential Mutual Fund, Mutual Fund Flxicap Fund
Mumbai41 min ago
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One of the major market risks that poses bad risks is rising inflation. If inflation moves beyond the comfort zone, it can lead to higher interest rates. This may hinder recovery
- Indian market is expensive at the moment compared to 2020
- Flexi Cap Fund invests in all three large, mid and small
The business cycle of the Indian market is attractive. Credit growth, however, is low. Investment plans are about to start again. The risk of a global business cycle contraction exists. While the Indian business cycle is in its early stages.
Indian equity valuations are expensive
Rajat Chandak, Senior Fund Manager, ICICI Prudential Mutual Fund says that however one should know the fact that Indian equity valuations are no longer what it was in March 2020. We believe flexicaps to be an interesting category, he says. Because it allows investment in large to mid and small caps. Moreover, it is a category (as per SEBI’s scheme classification) among equity schemes which is the most flexible among all the equity schemes offered.
We recently launched this product as we see it as an interesting category for long term investors.
This is the reason for the strong performance
They say ICICI Prudential Multicap Fund’s strong performance was made possible by taking calls on stocks like Financial, Auto, Auto Suppliers. All these were selected in view of the economic recovery, which has contributed significantly to the performance of all these funds. Globally and India’s stock markets have been largely relieved by liquidity provided by global central banks. Due to this, all the markets of developed world trade have started trading at higher valuations.
Flexicap is an interesting category
According to him, from the investor’s point of view, Flexicap is one of the most interesting category among equity mutual fund categories. Because it does not have any kind of limit in terms of investment against different market capitalisations. Large cap exposure in the portfolio provides protection in times of volatility. Investing in medium and small caps helps in generating better returns in the long run. This balance between risk and reward makes equity investment a very reasonable investment opportunity.
Flexi cap fund is attractive
For what makes ICICI Prudential Flexi Cap Fund stand out, we would like to say that when it comes to investment or re-balancing time, the medium and small cap names are chosen between the in-house market cap. model based. In addition, the fund manager will further consider business cycles or macro-economic indicators to fine-tune the model allocation.
Outlook remains positive
The outlook on earnings growth remains positive whenever market valuations are high. More importantly, invest judiciously by choosing sectors and stocks where we see reasonable risk adjusted returns opportunities in the medium to long term.
Inflation is the worst risk
One of the major market risks that poses bad risks is rising inflation. If inflation moves beyond the comfort zone, it can lead to higher interest rates. This may hinder recovery. The second risk is looming over a possible third wave of Corona. But it is to be expected that by then a large population can be vaccinated. This can reduce its magnitude. For this, the steps taken by the government have to be appreciated.