ICICI Pru Dynamic Plan: Aimed for conservative investors

ICICI Prudential Dynamic Plan has been a consistent outperformer across time period. This fund is suited for slightly conservative investors who want an equity exposure to their portfolio with a limited amount of risk over a long term period, reckons Arnav Pandya

• The fund had the highest exposure to software at just over 10 per cent of the portfolio at the end of December 2009. This was followed by Pharma, bank and petroleum products. When it comes to individual stocks then Reliance Industries was the top holding in the portfolio with an exposure of over 8 per cent. Some of the other top holdings were Infosys, Bharti Airtel, Cadila Healthcare, IPCA Labs and HUL. Only the top three holdings had an exposure of over 5 per cent. The portfolio of the fund showed a mixture of both large and mid cap stocks. The fund was outperforming its benchmark the Nifty over the one, three and five year periods even though the portfolio turnover ratio was a bit high at 1.79 times.
• By the end of June 2010 the fund had the highest exposure to short term debt as the amount in liquid assets in the fund was over 20 per cent of the portfolio. The other sectors with a high exposure were banking as well as software, Pharma and petroleum products. Reliance Industries continued to be top company in terms of exposure though in the top 10 holdings there were two banks, two Pharma and two software companies. The fund was comfortably beating its benchmark over all time periods since inceptions and the portfolio turnover ratio surged even higher to 2 times.
• Banks continued to be a dominant sector in the portfolio with a share of over 18 per cent at the end of December 2010. This was followed by Pharma, software and petroleum products. Short term debt and other current assets was now a massive one third of the portfolio.  This was helping the fund to cushion itself from the fall in the market. In terms of individual stocks Reliance continued to be the top holding. BHEL, Infosys, Cadila Healthcare and Bharti were some of the other top holdings. The fund continued to beat its benchmark easily over all time periods.
• Banks remained the top sector at the end of June 2011 followed by software. The other top sectors included Pharma, petroleum and oil. The turnover ratio dropped to 1.22 times. The top individual holdings were Reliance Industries, Infosys and ICICI bank. The fund was still an outperformer over all time periods and the short term debt and other current assets were around 16 per cent of the portfolio.
• The fund now has software as its top sector at the end of December 2011. This was followed by banks and Pharma. This represents a change from the situation witnessed since quite some time wherein banks were at the top spot.  Infosys was the top holding with over 9 per cent of the portfolio followed closely by Reliance Industries with a similar figure. ICICI Bank, Bharti and Cipla were some of the other companies in the top 10 holdings list. There was an outperformance over all time periods for the fund but by now the portfolio turnover ratio remained just over 1 times.
• This fund is meant for those investors who want to have an exposure that will beat the leading large cap indices with a limited amount of risk over a long term period. It is suited for slightly conservative investors who want an equity exposure to their portfolio.