MF investment: This large-cap fund has given over 17% return in 5 years vs 13.20% benchmark return

Equity markets have experienced significant turbulence in the last five months, leading to sharp corrections in various frontline indices such as large, mid, and small-cap stocks. Despite the ongoing market volatility, Motilal Oswal Private Wealth (MOPW) recommends considering investments in equities for both short and long-term gains. The brokerage suggests making lump-sum investments in hybrid and large-cap funds, while advising a more cautious and staggered approach when deploying funds in mid and small-cap strategies over the next six months.

While the mid and small-cap segments have seen sharper corrections, the large-cap indices are currently trading at lower valuations. This presents potentially lucrative opportunities for investors, particularly in certain areas of the large-cap space that have experienced significant price reductions.

Experts believe that large-cap funds should constitute a significant portion of investors' portfolios, particularly for those with a moderate risk appetite seeking lower volatility in their investments.

ICICI Prudential Bluechip is a fund worth considering for inclusion in the core portfolio of investors who have a long-term outlook of 7-10 years. With a track record approaching 17 years, the fund has consistently outperformed benchmarks and delivered impressive returns within its category over the years.

Launched in January 2013, ICICI Prudential Bluechip Fund is a large-cap equity fund that primarily invests in India’s top 100 listed companies by market capitalisation. Managed by ICICI Prudential Asset Management Company, the fund is designed for conservative long-term investors aiming to build wealth steadily through blue-chip exposure.

As of March 25, 2025, the fund’s NAV stands at Rs 113.30, and it manages assets worth over Rs 60,000 crore. The portfolio includes 67 stocks with top holdings in blue-chip names like HDFC Bank, ICICI Bank, Larsen & Toubro, Reliance Industries, and Infosys.

Solid Performance in the Last 3 and 5 Years

3-Year Return: The fund delivered an impressive 28.14% average annual return over the last three years.

5-Year Return: Over a five-year horizon, the fund clocked an annualized return of 17.39%.

In comparison, the BSE 100 TRI benchmark returned 23.23% over 3 years and 13.20% over 5 years—indicating the fund’s consistent outperformance.

ICICI Pru Bluechip Fund - Performance (As on 25-Mar-2025)

Fund Name	YTD	1D	1M	3M	6M	1Y	3Y	5Y	7Y	10Y
ICICI Pru Bluechip Dir	-0.26	-0.06	5.10	-0.63	-8.43	9.48	17.73	28.28	16.03	14.18
BSE 100 TRI	-1.19	-0.19	5.19	-1.49	-9.70	8.76	13.87	25.84	14.66	12.56
Equity: Large Cap	-2.22	-0.35	4.81	-2.61	-11.08	7.69	14.30	25.03	14.15	12.14
Rank in Category	41	39	30	40	15	15	4	5	3	3
Number of Funds	99	103	102	97	96	91	78	55	45	42

Source: Value Research

Asset allocation

ICICI Prudential Bluechip primarily invests 80-85% of its portfolio in large-cap stocks, with around 5-10% allotted to mid-cap stocks, focusing on well-known companies in the industry. Its top 5 holdings include HDFC Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., and Bharti Airtel Ltd. The fund emphasizes value investing but also includes a few growth stocks in its portfolio.

The fund has shown a preference for banks, which have held the most weight in the portfolio. However, the allocation to other sectors is adjusted based on market conditions and fundamentals, with significant exposure to IT-software and petroleum products.

Fund's performance

The fund’s strong 3-year performance came despite market volatility, supported by large-cap resilience and a diversified sector allocation, with financials leading at over 30% of the portfolio. Its risk profile remains relatively moderate, with a standard deviation of 12.40 and a Sharpe Ratio of 0.73, which is superior to the category average.

Peer Comparison - Large Cap Equity Funds

Fund Name	1M	6M	1Y	3Y	5Y	10Y
ICICI Prudential Bluechip Fund	5.46%	-9.07%	9.53%	17.61%	27.41%	14.41%
Nippon India Large Cap Fund	5.75%	-8.91%	9.99%	20.01%	29.41%	14.49%

Source: Value Research

SIP-Friendly and Long-Term Oriented

This fund is especially suited for SIP investors with a long-term horizon (5+ years). According to the fund’s suitability disclosure, it’s designed to fall less during downturns—thanks to its blue-chip focus—making it a good “core holding” in conservative equity portfolios.

SIP calculation

Given an initial investment of Rs 100,000 and a monthly SIP of Rs 10,000 over a 12-year period, an investor can accumulate Rs 47,49,890 with an annualized return of 16.43%. The total investment over the 12-year period would be Rs 15,40,000.