Long-term investment of funds having potential for capital appreciation following value investment philosophy
ICICI Prudential PMS has a conviction led, long-term approach to investments. Its long-term focus is predicated on the belief that decision making focused on short-term outcomes often comes at the expense of long-term value creation.
Their investment philosophy is based on GARP (Growth at Reasonable Price) which is a blend of two distinct approaches to long-term investment – ‘value approach’ and ‘growth approach. It follows principles of identifying growth opportunities, buying them at reasonable prices and being proactive in dealing with macroeconomic changes.
Investment Philosophy: ICICI Prudential PMS Large-Cap Portfolio (the Portfolio) is a diversified equity portfolio that endeavours to achieve long term capital appreciation by investing predominantly in large-cap companies.
Investment Strategy: The Portfolio aims to generate alpha by active sector rotation through a top-down approach. The top-down approach is used to identify key macroeconomic and sectoral themes, and subsequently to help identify stocks that are expected to benefit from the same.
The Portfolio intends to reduce concentration risk through diversification at the stock and sector levels. The Portfolio seeks to invest in large cap companies with a proven track record, effective management and good growth potential.
Investment Philosophy: ICICI Prudential PMS Flexi-Cap Portfolio (the Portfolio) is a diversified equity portfolio that endeavors to achieve long term capital appreciation and generate returns by investing across market cap.
Investment Strategy: The investment strategy follows a mix of a top-down and a bottom-up approach. The top-down approach is used to identify key macroeconomic and sectoral themes and subsequently helps to identify stocks that are expected to benefit from the same. A bottom-up approach is applied based on the belief that there are always individual companies that provide attractive investment opportunities under various industries and market conditions.
The prominence given to the top-down vs. bottom-up approach would vary from time to time depending on macroeconomic, sectoral and company specific fundamentals. The Portfolio Manager would aim to give weightage to other factors like effective management, scalable businesses and pricing power of the company, sustainable competitive edge and visible brands, while selecting investment ideas.
Investment Philosophy: ICICI Prudential PMS Value Portfolio (the Portfolio) aims to follow a value investment style and intends to offer a diversified portfolio of stocks that have a high potential but are quoting at a discount to their fair/intrinsic value.
Investment Strategy: The core investment philosophy of value investing is based on the belief that stocks cannot continue to quote at values that are significantly below their fair values over the long term. At some point in time, the markets are likely to recognize the extent of undervaluation of these companies. The same could lead to a rerating/appreciation in the company’s stock price.
There are various reasons why stocks tend to quote at low valuations. Some of these include:
The Portfolio Manager aims to find a good business at a reasonable price and not a mediocre business at a bargain price. The Portfolio Manager endeavors to invest in securities with:
Investment Philosophy: ICICI Prudential PMS – Contra Portfolio (the Portfolio) seeks to generate capital appreciation by investing predominantly in Equity & Equity Related Instruments through contrarian investing. For defensive consideration, the Portfolio may invest in debt and money market mutual fund schemes.
Investment Strategy: The Portfolio aims to provide long term capital appreciation and generate returns by investing in under performing stocks or sectors, which are available at their intrinsic valuations and are expected to perform well in the long run. For defensive consideration, the Portfolio may invest in debt and money market mutual fund schemes.