A monthly SIP of ₹10,000 since inception, totaling ₹6.10 lakh in contributions, would now be worth around ₹9.74 lakh, representing a compound annual growth rate (CAGR) of 18.47%, as per the fund house.
Over the same period, the benchmark Nifty 500 TRI recorded a CAGR of 13.11%, according to fund data.
Lump-sum investors have also seen gains.
A ₹1 lakh investment at launch would have grown to approximately ₹2.51 lakh, compared with ₹2.06 lakh in the benchmark, implying a CAGR of 20.06% versus 15.47% for the Nifty 500 TRI.
Business-cycle-based strategy
The fund follows a business-cycle-oriented investment approach, allocating capital across sectors based on the prevailing economic phase. Its objective is to generate long-term capital appreciation by positioning the portfolio to respond to expansions, recoveries, and slowdowns.
The portfolio is predominantly focused on domestic-facing sectors, with nearly 80% of assets in segments expected to benefit from improving economic activity. Financials constitute the largest allocation, supported by exposure to automobiles, construction, and selected industrial sectors. The fund reviews its holdings periodically to reflect evolving macroeconomic conditions.
S Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC, noted that “a large part of India’s economy is inherently cyclical, and equity leadership shifts as the business cycle evolves. Our focus is on understanding where the economy is positioned and aligning sector exposure accordingly over a three-to-four-year horizon.”
Considerations for Investors
The fund may be suitable for investors with a long-term horizon who can tolerate market volatility. However, past performance does not guarantee future results, and equity investments remain subject to market risks, sectoral shifts, and macroeconomic developments, experts say.
