Top ICICI Mutual Funds to Invest Online in 2024
ICICI Prudential Mutual Fund ranks among India’s leading asset management firms. Established in 1993 through a collaboration between ICICI Bank and Prudential Plc, it holds an “AAAmfs” rating, indicating its strong reliability. The Prudential Group, a renowned global insurance provider, is its partner. ICICI Prudential Mutual Fund significantly contributed to the development of the CRISIL rating system in India, which serves as a health check for mutual funds akin to the CIBIL score for personal credit assessment.
What are ICICI Mutual Funds?
Established in 1993 as ICICI Prudential Asset Management Company Limited (a part of ICICI Group), Prudential Plc joined forces with ICICI Bank in 1998 to form a partnership. ICICI Bank owns 51%, and Prudential Plc owns 49% of this joint venture. ICICI Prudential Mutual Fund, with over 20 years of experience, provides Portfolio Management Services. They operate in more than 350 locations and serve 7.5 million investors.
ICICI Prudential Mutual Fund schemes also provide 252 mutual fund schemes, including 54 equity schemes, 153 debt schemes, 14 hybrid schemes, and 31 other schemes.
List of Best ICICI Prudential Mutual Funds in India 2024
Here is a list of the top 10 ICICI mutual funds you might consider investing in.
| ICICI Mutual Fund Type | Fund Size (in Cr) | 3Y Returns |
|---|---|---|
| ICICI Pru Infrastructure Fund | ₹5,186 | +41.68% |
| ICICI Pru Dividend Yield Equity Fund | ₹3,626 | +33.20% |
| ICICI Pru Smallcap Fund | ₹87,669 | +30.45% |
| ICICI Pru Large & Mid Cap Fund | ₹12,307 | +28.00% |
| ICICI Pru Value Discovery Fund | ₹41,281 | +27.62% |
| ICICI Pru Equity & Debt Fund | ₹33,502 | +26.20% |
| ICICI Pru Large & Mid Cap Fund | ₹12,307 | +26.09% |
| ICICI Pru Multi-Asset Fund | ₹34,703 | +25.72% |
| ICICI Pru Multi-Asset Fund | ₹34,703 | +25.69% |
| ICICI Pru Focused Equity Fund | ₹7,582 | +24.91% |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on the top ICICI mutual funds in India in the list is from 16th April, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Key Information About ICICI Prudential Mutual Fund
| Mutual Fund Name | ICICI Prudential Mutual Fund |
|---|---|
| Founded | October 23,1993 |
| AMC Incorporation Date | June 22, 1993 |
| Sponsor Name | Prudential Plc and ICICI Bank Ltd. |
| Trustee Organisation | ICICI Prudential Trust Ltd. |
| MD and CEO | Mr. Nimesh Shah |
| CIO | Mr. S Naren |
| Compliance Officer | Ms. Supriya Sapre |
Top 10 ICICI Mutual Funds Overview
Let’s discuss the 10 top ICICI mutual funds below:
ICICI Prudential Infrastructure Fund
ICICI Prudential Infrastructure Fund is an Equity scheme offered by ICICI Prudential Mutual Fund in October 1993. This fund aims to capitalize on India’s infrastructure growth by investing in companies involved in developing and maintaining essential infrastructure projects.
ICICI Prudential Dividend Yield Equity Fund
Launched in October 1993, this Equity mutual fund scheme is designed for income-seeking investors. This fund invests in stocks with a track record of consistent dividends, providing a potential income stream along with capital appreciation.
ICICI Prudential Smallcap Fund
ICICI Prudential Dividend Yield Equity Fund is an Equity mutual fund scheme launched in October 1993. Focused on small-cap companies, this fund aims to provide growth opportunities by investing in stocks with high growth potential, though typically associated with higher risk. Mrinal Singh and Mittul Kalawadia are managing this fund.
ICICI Prudential Large & Mid Cap Fund
ICICI Prudential Large & Mid Cap Fund is an Equity fund scheme launched by ICICI Prudential Mutual Fund in October 1993. This fund strikes a balance between large and mid-cap stocks by providing diversification to the portfolio. Sankaran Naren and Prakash Gaurav Goel are managing this fund.
ICICI Prudential Value Discovery Fund
ICICI Prudential Mutual Fund offers the Equity mutual fund scheme ICICI Prudential Value Discovery Direct-Growth. Launched in October 1993, Sankaran Naren and Dharmesh Kakkad are managing this fund.
ICICI Prudential Equity & Debt Fund
ICICI Prudential Equity & Debt Fund is a hybrid scheme offered by ICICI Prudential Mutual Fund. This scheme was launched in October 1993. Thus, Manish Banthia, Atul Patel, Kakkar, and Sankaran Naren are managing this fund.
ICICI Prudential Mid Cap Fund
ICICI Prudential Mid Cap Fund is an Equity mutual fund scheme offered by ICICI Prudential Mutual Fund. This scheme was launched in October 1993. Focused on mid-cap stocks, this fund aims to tap into the growth potential of medium-sized companies, typically associated with higher volatility but higher growth prospects. Currently, Mrinal Singh and Mittul Kalawadia are managing this fund.
ICICI Prudential MultiAsset Fund
ICICI Prudential Multi Asset Fund Direct-Growth is a Hybrid mutual fund offered by ICICI Prudential Mutual Fund. Manish Banthia, Akhil Kakkar, Ihab Dalwai, Sankaran Naren, Sri Sharma, and Gaurav Chikane are managing this fund.
ICICI Prudential Multicap Fund
ICICI Prudential Multicap Fund is an Equity fund offered by the ICICI Prudential Mutual Fund. The scheme was launched in October 1993. Sankaran Naren and Anand V Sharma currently manage this scheme.
ICICI Prudential Focused Equity Fund
ICICI Prudential Focused Equity Fund is an equity scheme offered by ICICI Prudential Mutual Fund. Launched in October 1993 and is currently managed by its fund managers Anish Tawakley and Vaibhav Dusad.
Documents Required to Invest in ICICI Mutual Funds
The documents for the KYC process include proof of identity and proof of address. Please have a look at the standard list of documents below:
Proof Of Identity
- PAN Card (Mandatory)
- Voter ID Card
- Driving License
- Passport
- Aadhaar Card
- Any other identity card issued by Central or State Government
Proof Of Address
- Voter ID Card
- Driving License
- Passport
- Ration Card
- Aadhaar Card
- Bank account statement or bank passbook
- Utility bills like electricity or gas bills
How to Invest in Schemes of ICICI Prudential Mutual Fund?
You can invest in ICICI Mutual Fund schemes in two ways:
(a) Through the official website of the AMC
(b) Through a distributor
To invest through the ICICI Pru Mutual Fund website, you must register and create an account. Thereafter, follow the fund house’s outlined steps. However, if you’re planning to invest in ICICI mutual fund schemes via different AMCs, it could be a hassle since the registration process can be tedious. As a result, managing and analyzing investments across different AMCs may pose challenges.
On the other hand, opting for a distributor may simplify the process but comes at a high cost. The higher expense ratio associated with distributors means lower returns for you, as they charge a commission on your investments.
How Does ICICI Prudential MF Work?
ICICI Prudential Mutual Funds pool money from different investors to invest in a diversified portfolio of stocks, bonds, and other securities. Investors purchase units of the mutual fund, and the fund’s performance directly depends on the performance of its underlying assets. Thus, ICICI Prudential MF provides a variety of ICICI funds managed by top fund managers.
The fund charges expenses for managing investments, and returns are distributed among investors based on their proportional holdings. Overall, ICICI Prudential MF provides a convenient way for investors to access a diversified investment portfolio without directly managing individual securities.
Features of ICICI Mutual Funds
Here are the features of ICICI Mutual Funds.
- Professional Management: Expert fund managers at ICICI take the wheel, analyzing the market, picking investments, and rebalancing the portfolio to maximize returns while managing risk.
- Investment Flexibility: Start small with just Rs. 100! Choose from lump sum investments or Systematic Investment Plans (SIPs) that let you invest a fixed amount at regular intervals. Evaluate ICICI SIP plans and returns according to your goals and objectives.
- Convenience: Manage your investments online or through a mobile app. Track performance, make transactions, and get regular updates – all at your fingertips.
- Choice: Choose from various schemes each showcasing different investment objectives, risk levels, and durations. So whether you’re building wealth for the long term, saving for retirement, or seeking regular income, there’s an ICICI mutual fund online for you.
- Transparency: Access detailed information about each scheme, including investment strategies, past performance, and fund factsheets.
Who Should Invest in ICICI Prudential Mutual Funds?
ICICI Prudential Mutual Funds can be suitable for investors with varying financial goals and risk appetites. Individuals looking to invest in a professionally managed portfolio of stocks, bonds, and other securities can consider ICICI Prudential MF.
Additionally, ICICI Mutual Funds offers specific funds tailored for different investment goals, such as wealth creation, regular income, or tax savings. Investors who prefer the expertise of professional fund managers and the convenience of diversification can find ICICI Prudential Mutual Funds a suitable investment option.
Factors to Consider Before Investing in ICICI Mutual Funds
Before investing in ICICI large and midcap funds, let’s have a look at factors one should consider before investing.
- Investment Goals and Risk Tolerance: Before investing in the best-performing ICICI mutual funds, define your investment goals, whether it’s wealth creation, regular income, or tax savings. Assess your risk tolerance before investing.
- Fund Performance and Track Record: Look at the fund’s track record over various market conditions to gauge its consistency and ability to meet its objectives.
- Expense Ratios and Fees: Understand the cost structure associated with the mutual funds. Pay attention to expense ratios and fees, as lower costs can contribute to higher returns over the long term.
- Fund Manager Expertise: Evaluate the expertise and performance history of the fund manager as their decision-making can significantly impact the fund’s success.
- Diversification and Asset Allocation: Portfolio diversification can help manage risk, and the right asset allocation should align with your investment objectives and risk tolerance.
- Exit Load and Liquidity: Be aware of any exit loads associated with redeeming your investment before a specified period. Additionally, assess the liquidity of the mutual fund to ensure that you can enter or exit the fund easily.
Risks Involved While Investing in ICICI Mutual Funds
Here are some risks associated with investing in ICICI Fund.
- Scheme-Specific Risk: Each ICICI Mutual Fund has a different investment objective and strategy. Therefore, the risk profile can vary depending on the type of assets it invests in (equities, debt, gold, etc.).
- Liquidity Risk: While some ICICI Mutual Funds offer open-ended schemes with immediate redemption options, others might have lock-in periods or exit loads. This means you may need more time to access your invested money.
- Fund Manager Risk: The performance of your ICICI Mutual Fund heavily relies on the expertise and decision-making abilities of the fund manager. If they make poor investment choices, it can negatively impact your returns.
- Expense Ratio: All ICICI Mutual Funds impose an expense ratio that covers the fund’s operational expenses. Although these fees are generally minimal, a higher expense ratio can eat into your potential returns over time.
Benefits of Investing in the Top ICICI Mutual Funds
Investing in the top ICICI Mutual Funds can offer several potential benefits, some of them have been listed below:
- Professional Expertise: Top ICICI Mutual Funds are managed by experienced fund managers. This can help you achieve your financial goals without having to spend time researching and managing your portfolio.
- Diversification: Investing in a mutual fund allows you to spread your risk across various assets, such as stocks, bonds, and cash. This can help smooth out the market’s ups and downs and improve your returns over the long term.
- Convenience: Mutual funds offer a hassle-free approach to investing, as you don’t need to manage individual securities on your own. You can easily set up an automatic investment plan to invest a fixed monthly amount.
- Potential for Higher Returns: Top ICICI Prudential Tech Funds have the potential to outperform the market over the long term. They can achieve this by accessing a broader range of investment opportunities than individual investors.
Top ICICI MF Managers
Mr. Sankaran Naren
Mr. Sankaran Naren is the Chief Investment Officer (CIO) with over 28 years of experience. As the strategist and executor for ICICI Bank Mutual Fund and the International Advisory segment, he is pivotal in shaping and implementing strategies.
He joined ICICI Bank Mutual Fund in 2004. He holds a B.Tech degree from IIT Chennai and an MBA in Finance from IIM Kolkata. Before joining ICICI Bank Mutual Fund, he held significant positions in several security companies, contributing to his wealth of expertise in the field.
Rahul Goswami
As Senior Fund Manager, Rahul Goswami oversees eight debt funds at ICICI Bank Mutual Fund. These funds include ICICI Prudential Liquid Plan, ICICI Prudential Floating Rate Fund, ICICI Prudential Flexible Income Plan, ICICI Prudential Banking & PSE Debt Fund, ICICI Prudential Guilt Plan, ICICI Prudential Medium Term Plan, ICICI Prudential Multiple Yield Fund, and ICICI Prudential Capital Protection Oriented Fund. After initially joining as the Chief Investment Officer- Fixed Income, Mr. Goswami rejoined ICICI Bank Mutual Fund for his second term.
How to Choose the Best ICICI Large and Midcap Funds for Investing?
It is advisable to follow a straightforward process when choosing the best ICICI Large and Midcap Funds for investing.
- Research ICICI Large and Midcap Funds: Start by researching the available Large and Midcap Funds offered by ICICI. Visit their official website or consult a financial advisor to get a list of funds in this category.
- Understand Fund Objectives: Read and understand the investment objectives of each fund. Different funds may have different goals, so aligning them with your investment objectives is crucial.
- Expense Ratios: Compare the expense ratios of different funds. Lower expense ratios are generally favourable as they reduce the overall cost of investing.
- Risk Tolerance: Evaluate your risk tolerance. Different funds may have varying risk levels, and choosing one that aligns with your comfort level is essential.
- Asset Under Management (AUM): Consider the size of the fund’s assets under management. While a higher AUM can indicate a well-established fund, be cautious of funds that have grown too large, as it may impact their flexibility in managing investments.
What are the Returns on ICICI MF & How are they Calculated?
The returns on ICICI Mutual Funds are calculated based on the fund’s Net Asset Value (NAV) change. The formula for returns is:
Returns = (Current NAV−Initial NAV+Dividends/Gains Initial NAV)× 100
where,
Current NAV = Current Net Asset Value
Initial NAV = Net Asset Value at the beginning of the investment period
Dividends/Gains = Distributed profits or gains during the investment period
Returns can be expressed as percentages. It measures how much an investment has grown or declined over a specific period. Considering the time frame and associated costs, such as fees or loads, is essential when evaluating the investment’s overall performance.
Example:
Let’s say you invested Rs. 10,000 in the ICICI Prudential Value Discovery Fund on January 1, 2022, and the NAV on December 20, 2023, is Rs. 120.
- Simple Return: (120 – 100) / 100 * 100% = 20%
- Annualized Return: (120 / 100) ^ (1 / (365 / 365 + 11 months / 12)) – 1 * 100% ≈ 430247414340.98%
Taxation on ICICI Prudential Mutual Funds as per the Union Budget for 2024-25
The taxation on capital gains from your mutual fund investments is based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. It may be important to learn about these revisions when considering ICICI Prudential mutual funds. These changes include:
Equity Mutual Funds
- Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
- Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:
- Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
- Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
- Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Debt Mutual Funds
- Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
- Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds, including:
- Tax Rate: A flat 12.5% tax rate applies to these gains.
- No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.
- Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 36 months | Taxed according to your income tax slab | Taxed according to your income tax slab |
| Long-Term Capital Gains (LTCG) | More than 36 months | 10% | 12.50% |
Hybrid Mutual Funds
Short-Term Capital Gains (STCG)
The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:
- Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
- Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.
Long-Term Capital Gains (LTCG)
The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:
- Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
- Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.
| Type of Hybrid Fund | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) | Indexation Benefit |
| Equity-Oriented Hybrid Funds | 20% for holdings less than 1 year | 12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free | Not available |
| Debt-Oriented Hybrid Funds | Taxed as per income tax slab for holdings less than 3 years | 12.5% for holdings over 3 years | Not available |
Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.
To Wrap It Up…
In conclusion, ICICI Prudential Mutual Fund stands out as a reliable option for investors seeking a well-managed and diversified investment portfolio. With a focus on long-term wealth growth, the fund’s strategic investment approach, led by experienced fund managers, adds a layer of confidence for investors.
As always, investors must do their own research and/or consult their financial advisor before investing.
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Frequently Asked Questions(FAQs) on ICICI Mutual Funds
The investment duration for ICICI mutual funds depends on goals: long-term (5+ years) for wealth creation and shorter (3-5 years) for specific needs. However, it’s important to do your own research and/or consult a financial advisor before investing.
ICICI mutual funds choose investments based on your scheme type: Equity in stocks across sectors, Debt in government/corporate bonds, or ICICI advantage balanced funds for diverse exposure.
If the market looks promising, one can opt for ICICI equity funds for wealth creation goals and high-risk tolerance. One can also opt for short-term debt funds when seeking stability, income, or parking funds. However, do your own research and/or consult a financial advisor before investing.
Lock-in periods may only apply to ICICI Prudential’s Equity Linked Savings Schemes (ELSS) for three years. However, other ICICI MFs, like open-ended ones, let you withdraw anytime (though fees might apply).
After completing your KYC formalities, register for the ICICI SIP mutual fund through your preferred fund house. Log in to the ICICI MF customer portal and enter the bank account information that you want to use for SIP deductions.
You can contact the customer care team by calling the toll-free number: 1800-222-999/ 1800-200-6666 or email them at enquiry@icicipruamc.com.
