After smarting from losses in the last couple of years, small cap funds are back in the reckoning. In fact, small cap funds are the third best performing category in the last one month with average 11.2% return, behind banking funds (12.3%) and infrastructure funds (14.7%). Just one month may be too small a time to judge performance, but who can complain if a fund gives nearly 15% gain? Investors are psychologically much more comfortable about investing when they see past returns. This creates demand for investments products. In a bid to tap this demand, some fund-houses have now started again accepting lump sum investments. The latest one to join this bandwagon is ICICI Prudential Smallcap Fund. Read on to know more.
In a notice dated March 15, the country’s largest fund-house ICICI Prudential announced that its ICICI Prudential Smallcap Fund will accept subscriptions through lump sum investments with effect from March 19, 2019. Interestingly, the fund had discontinued lump sum investment from August 2018. So, eight months into the self-imposed bar, the fund will now again start mopping up inflows in lump sum from from investors. The scheme is managed by fund-house CIO Sankaran Naren and Harish Bihani.
The ICICI Prudential Smallcap Fund (erstwhile ICICI Prudential Indo Asia Equity) is a Rs 176 crore scheme. It is the fifth smallest smallcap fund among 20 peers, but the fund has shown great performance in the short-term period. As on March 19, ICICI Prudential Smallcap Fund is the best scheme in the year to date period with 4.8% gain and the best scheme in three months with 5.39% gain.
In the last one month period, ICICI Prudential Smallcap Fund has generated 14.92% gain making it the 3rd best performer behind Aditya Birla Sun Life Small Cap Fund (16.44%) and Sundaram Small Cap Fund (15.39%).
As on Feb. 28, 2019, ICICI Prudential Smallcap Fund’s top portfolio constituents were Dixon Technologies, PNC Infratech, Blue Star, KNR Constructions, Amber Enterprises, Brigade Enterprises, JK Cement, Ipca Laboratories, Sandhar Technologies, and Orient Electric Engineering.
The fund has 83% of money invested in small caps and the rest 17% in midcaps.