The ICICI Prudential Value Discovery Fund, which was launched on 16 August 2004, is an open-ended equity scheme with a value investment strategy. It intends to invest in available stocks at lower prices than its historical prices, company profits, and performance.
Through its discovery process, the scheme intends to invest in stocks that are quoting their intrinsic value at a discount. The method of discovery involves searching for well-managed, fundamentally sound companies that are available at a price that can be considered a bargain.
ICICI prudential value discovery fund scheme is suitable for
- Those willing to participate in the process of finding undervalued stocks but who can perform well due to strong fundamentals.
- They are looking for a long term investment and with an investment horizon of over five years
- Those who want to invest in a diversified portfolio
- Long term solution to wealth creation.
- It is an open equity plan followed by a strategy for value investing.
Investors should discuss their financial advisors if in doubt whether the scheme is suitable for them.
Suitability for invest in for ICICI Prudential Value Discovery Fund
Investors know macro trends and prefer to place targeted bets for higher returns relative to other equity funds. At the same time, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to high losses on their investments.
You can expect returns by saving five years or more, which comfortably defeats the rate of inflation and is higher than fixed income options. But be prepared to fluctuate according to your interest in investment.
The fund follows a value/ contrarian investment strategy, which seeks to find stocks that are substantially lower than their actual value perceived by the fund team. As with all equity funds you do, you only have to invest through the SIP method.
Features of ICICI Prudential Value Discovery Fund Scheme
- Type of scheme is an open-ended equity scheme following a value investment strategy
- Investment Amount- Rs.1000
- Minimum Additional Investment- Rs. 500
- Minimum Redemption Amount- Rs. 500
- Entry Load- Not Applicable
- Exit Load- Up to 12 Months from allotment1% of applicable
- NAV- more than 12 months-NIL
- Fund Manager- Mrinal Singh has been managing this scheme since Feb 2011 and has 14 years of the overall experience.
Taxability of earnings:
- Funds up to Rs 1 lakh in a financial year will be exempt from tax if the mutual fund units are sold after one year from the date of investment. Earnings above Rs 1 lakh taxed 10%.
- If units of mutual funds are sold within one year of the date of investment, the total amount of profit will be taxed at the rate of 15%.
- As long as the units are in your possession, there is no tax.
Note: if you need to redeem your investment in less than five years, do not invest in it, or any other value-oriented fund.