Thinking of Investing in ICICI Blue Chip Fund? Here’s What You Need to Know

The ICICI Blue Chip Fund has earned a prestigious 5-star rating as of July 2023, undoubtedly attracting the attention of investors. However, the question arises whether this fund is genuinely worth investing in. To make an informed decision, it is essential to delve into the fund’s past performance and assess its potential for future growth.

This article will thoroughly analyze the ICICI Blue Chip Fund’s track record to determine its suitability as an investment option. By examining its performance and key metrics, we aim to provide you with the necessary insights to evaluate the fund’s current standing and make an informed investment decision.

So, let’s dive into the details and assess the ICICI Blue Chip Fund’s performance in order to gain a clearer understanding of its investment potential.

ICICI Prudential Bluechip Fund Details :

The ICICI Prudential Bluechip Fund is India’s oldest and largest equity mutual fund. It has existed for over 15 years and has an asset under management (AUM) of over 37,016 crores.

Investment objective: The fund seeks to generate long-term capital appreciation by investing in a portfolio of large-cap stocks. Large-cap stocks are those issued by companies with a market capitalization of over ₹50 billion.

Minimum investment: The minimum investment amount for the ICICI Prudential Bluechip Fund is ₹100. This makes it a good option for investors looking to start small.

Exit load: There is a 1% exit load if you redeem your investment within one year of making it. However, if you redeem your investment after one year, there is no exit load.

ICICI Prudential Bluechip Fund Average Returns:

Years 1 3 5 7 10 12
Icici Blue Chip 18.71% 23.53% 12.62% 13.18% 14.83% 12.93%
Nifty 100 11.33% 25.11% 12.22% 13.61% 13.80% 12.05%

We can assess the fund’s ability to outperform or align with the benchmark by examining the returns over different time periods.

Over a 1-year period, the ICICI Prudential Bluechip Fund delivered a commendable return of 18.71%, surpassing the Nifty 100’s return of 11.33%. This indicates that the fund has outperformed the benchmark and may be considered a good investment choice for short-term gains.

Looking at the 3-year performance, the fund generated a return of 23.53% while the Nifty 100 returned 25.11%. Although the fund slightly lagged behind the benchmark during this period, it still showcased competitive returns, demonstrating its potential to deliver attractive long-term gains.

However, over a five-year period, the ICICI Prudential Bluechip Fund recorded a return of 12.62%, slightly lower than the Nifty 100’s return of 12.22%. This suggests that the fund’s performance was in line with the benchmark but did not significantly outperform it.

Similarly, the fund’s returns ranged from 13.18% to 14.83% over seven, ten, and twelve-year periods, while the Nifty 100’s returns ranged from 13.61% to 12.05%. During these periods, the fund consistently provided returns that were either on par with or slightly higher than the benchmark.

Considering the above analysis, it is evident that the ICICI Prudential Bluechip Fund has showcased mixed performance when compared to the Nifty 100. When the fund outperformed the index, it can be regarded as a good investment option. However, during periods where the fund’s returns aligned with or slightly lagged behind the benchmark, investors may need to weigh the fund’s performance against their investment goals and risk tolerance.

ICICI Prudential Bluechip Fund: An In-Depth Analysis of Yearly Returns

Year Icici Blue Chip Fund Nifty 100 TRI Performance
31-12-09 91.19% 84.88% OutPerformed
31-12-10 27.07% 19.28% OutPerformed
30-12-11 -16.41% -24.93% OutPerformed
31-12-12 26.79% 32.51% UnderPerformed
31-12-13 10.21% 7.89% OutPerformed
31-12-14 41.10% 34.88% OutPerformed
31-12-15 -0.21% -1.26% OutPerformed
30-12-16 7.74% 5.01% OutPerformed
29-12-17 32.75% 32.88% UnderPerformed
31-12-18 -0.81% 2.57% UnderPerformed
31-12-19 9.77% 11.83% UnderPerformed
31-12-20 13.49% 16.08% UnderPerformed
31-12-21 29.17% 26.45% OutPerformed
30-12-22 6.85% 4.94% OutPerformed
30-05-23 2.98% 1.59% OutPerformed

Summary of Icici Blue Chip Fund Yearly Returns

Total Years: 14 years (from 31-12-09 to 30-05-23)

Positive Years of Funds: 12 out of 14 years

Negative Years of Funds: 2 out of 14 years

Underperformance Years: 5/14

Performance in Positive Years:
  • In the 12 positive years, the fund delivered returns ranging from 2.98% to 91.19%.
  • The best-performing year was 2009, with a remarkable return of 91.19%.
  • Other notable years with significant returns include 2014 (41.10%), 2021 (29.17%), and 2017 (32.75%).
Performance in Negative Years:
  • In the 2 negative years, the fund experienced negative returns ranging from -16.41% to -0.81%.
  • The worst performing year was 2011, with a return of -16.41%.
  • The other negative year was 2015, with a marginal negative return of -0.21%.

Overall, the ICICI Prudential Bluechip Fund has demonstrated a positive performance in most years, with 12 out of 14 years yielding positive returns. The fund has had several exceptional years, achieving significant returns and outperforming the benchmark.

Rolling Returns

5-Year Rolling Returns and Performance of Icici Blue Chip Fund:

5 Year Rolling Returns
5 Year Rolling Returns Icici Blue Chip Nifty 100
Total number of rolling return entries 2463 2481
Effective CAGR of average IRR (approximately same as average XIRR) 14.37% 12.88%
Maximum rolling return 26.6% 23.1%
Minimum rolling return -0.9% -0.7%
Chance of fund beating index (with rolling XIRR data) 69.67%  
Total number of Aevrgae return entries 1 1
Average Returns 12.21% 12.12%
Standard deviation of average  returns 17.9% 18.9%
Alpha 0.4%  
Sharpe ratio 0.28 0.26
R sqaured 96.64%  
10 Year Rolling Returns
10 Year Rolling Returns Icici Blue Chip Nifty 100
Total number of rolling return entries 1234 1247
Effective CAGR of average IRR (approximately same as average XIRR) 14.27% 12.85%
Maximum rolling return 20.4% 18.2%
Minimum rolling return 7.1% 5.4%
Chance of fund beating index (with rolling XIRR data) 94.89%  
Total number of Aevrgae return entries 1 1
Average Returns 14.48% 13.48%
Standard deviation of average  returns 15.7% 16.6%
Alpha 1.4%  
Sharpe ratio 0.46 0.38
R sqaured 96.41%  

Total Number of Rolling Return Entries: The ICICI Prudential Bluechip Fund has 2463 rolling return entries, while the Nifty 100 has 2481 rolling return entries. These entries provide a comprehensive view of the fund’s performance across various time periods.

Effective CAGR of Average IRR: The ICICI Prudential Bluechip Fund showcases an effective Compound Annual Growth Rate (CAGR) of approximately 14.37% in its average Internal Rate of Return (IRR). In comparison, the Nifty 100 exhibits an average CAGR of approximately 12.88% in its average IRR. These figures highlight the fund’s ability to deliver attractive long-term returns.

Maximum and Minimum Rolling Returns: The ICICI Prudential Bluechip Fund has achieved a maximum rolling return of 26.6% and a minimum rolling return of -0.9%. On the other hand, the Nifty 100 has recorded a maximum rolling return of 23.1% and a minimum rolling return of -0.7%. These statistics provide insights into the fund’s performance during different market conditions.

Chance of Fund Beating Index: With the available rolling XIRR data, the ICICI Prudential Bluechip Fund has a chance of beating the index at approximately 69.67%. This percentage showcases the fund’s ability to outperform the Nifty 100 in terms of returns.

Average Returns and Standard Deviation: The ICICI Prudential Bluechip Fund demonstrates an average return of 12.21%, while the Nifty 100 exhibits an average return of 12.12%. The standard deviation of the average returns for the fund is 17.9%, and for the index, it is 18.9%. These figures provide insights into the fund’s risk-adjusted performance and volatility compared to the benchmark.

Alpha, Sharpe Ratio, and R-squared: The fund exhibits an alpha of 0.4%, which indicates the excess return generated beyond the benchmark. The Sharpe ratio, a measure of risk-adjusted returns, is 0.28 for the ICICI Prudential Bluechip Fund and 0.26 for the Nifty 100. The R-squared value, representing the correlation between the fund and the index, is 96.64%. These metrics provide an understanding of the fund’s risk-adjusted performance and its ability to capture market movements.

And the Performance Is Same for 10 Year Rolling Returns.

Conclusion:

The ICICI Prudential Bluechip Fund’s 5-year rolling returns and performance metrics offer valuable insights into its historical performance and potential to outperform the Nifty 100. With a strong average return, competitive risk-adjusted performance, and a significant chance of beating the index, the fund showcases its ability to deliver attractive long-term returns.

Is the ICICI Prudential Bluechip Fund a Good Investment Option? 

fund_name Start_Year End_Year Rolling Chance_of_Beating Fund Market Performance
ICICI Prudential Bluechip Fund - Growth 2015 2019 5 48.98374 11.95221 12.38169 Under Performed
ICICI Prudential Bluechip Fund - Growth 2016 2020 5 36.55804 8.085964 9.542343 Under Performed
ICICI Prudential Bluechip Fund - Growth 2017 2021 5 24.43992 8.659517 10.25455 Under Performed
ICICI Prudential Bluechip Fund - Growth 2018 2022 5 36.55804 14.78404 15.5149 Under Performed

When evaluating the ICICI Prudential Bluechip Fund’s performance in detail for specific five-year time periods, namely 2015-2019, 2016-2020, 2017-2021, and 2018-2022, it is evident that the fund was unable to outperform the Nifty 100 Total Return Index (TRI) during these periods. This raises concerns about the fund’s performance and prompts a closer examination.

Between 2015 and 2019, the fund failed to surpass the returns of the Nifty 100 TRI. A similar pattern emerged between 2016 and 2020, 2017 and 2021, as well as 2018 and 2022. During these periods, the fund’s performance fell short of the benchmark index, suggesting a lag in generating superior returns.

Final Conclusion

Based on a detailed analysis of the ICICI Prudential Bluechip Fund’s performance, it is not considered a good investment option. The fund has struggled to consistently outperform the Nifty 100 TRI during specific five-year periods. Therefore, it is recommended to thoroughly examine the fund’s details and performance before considering it for investment.

To make an informed decision, it is important to understand the fund’s investment strategy, Rolling returns and Specific Year Performance. By examining these factors, you can better understand the fund’s approach and potential to generate competitive returns.

If you are looking for direct mutual fund advice, we are here to help. Our team of experts can provide personalized guidance based on your financial goals, risk tolerance, and investment preferences. It is important to seek expert advice to make the right investment choices.

Remember, investing in mutual funds requires careful consideration and research. You can gain valuable insights and make more informed investment decisions by contacting us for direct mutual fund advice.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top