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Should I continue to invest in ICICI Prudential Value Discovery Fund?

debt mf
My income is Rs 46,000 per month. My risk profile is moderate. I have chosen these SIP schemes:
ICICI Prudential Value Discovery Fund: Rs 3,000 (Started in Jan 2017)
Aditya Birla Sun Life Tax Relief 96: Rs 2,000 (Started in Jan 2019)
SBI Small Cap Fund: Rs 1,000 (Started in Jan 2019)
PPF account: Rs 1,000 per month
LIC of Rs 24,000 yearly

My investment horizon is seven to 10 years. I want to know how is my portfolio? Should I continue to invest in ICICI Prudential Value Discovery Fund?
--Shaurya Subala


If your risk profile is moderate, you are supposed to invest mostly in multi cap mutual funds. You may also add large cap mutual funds if you want to diversify and reduce the overall risk in the portfolio.

You are currently investing in a value-oriented scheme, tax saving scheme, small cap scheme. Firstly, small cap schemes are not in line with your risk profile. They are meant for aggressive investors with a high tolerance for risk and volatility.

ICICI Prudential Value Discovery Fund is a value-oriented scheme. Value-oriented schemes have been going through a rough patch for a while. ICICI Prudential Value Discovery Fund also has been underperforming for a while now. However, the scheme’s track record and the performance of the entire category makes it difficult to take call on the scheme.

We have spoken to the fund manager of Value Discovery a few months ago; you can read the interview here: Recent performance of Value Discovery Fund due to expensive markets, says Mrinal Singh of ICICI Prudential Mutual Fund

Have you chosen a value-oriented scheme because you are a devotee of value investing? If no, you should consider investing in a good multi cap scheme.

Here are our recommended multi cap scheme: Best multi cap mutual funds to invest in 2019

Adopt a goal-based investment strategy. Identify your various financial goals, find out the cost to achieve those goals, provide for annual inflation and taxes to reach at a realistic target. For short-term goals, invest in debt mutual funds. You may invest in equity schemes that are in line with your risk profile to achieve your long-term financial goals. If you find this a big task, consider hiring a mutual fund advisor.
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