ICICI PRUDENTIAL Equity Mutual Fund offers 43 different types of mutual fund schemes under the category of equity mutual funds. As on March 2023, the total AUM belonging to these ICICI PRUDENTIAL AMC schemes is Rs 516,615 crores. ICICI PRUDENTIAL Equity schemes include bluechip funds, mid-cap, small-cap, opportunities funds, flexi-cap, index funds and so on.
Equity funds provided by ICICI mutual funds are suitable for investors who understand the risk and volatility associated with equity markets. Investors willing to focus on long-term capital appreciation consider investing in these funds. Also, staying invested can help them avoid market volatility in the short term. Therefore, ICICI Equity Mutual Fund is suitable for a minimum investment duration of 5-7 years. However, before investing, investors must identify the investment objective of any ICICI Equity Mutual Fund. Moreover, ICICI Equity schemes are ideal for investment objectives of child education, retirement planning, buying a dream house, etc.
Things To Consider Before Investing in ICICI Equity Mutual Fund
Investment Objective: ICICI Equity Funds aim to achieve long-term appreciation and wealth creation for its investors by investing in equity and equity related securities. To achieve this objective, ICICI Equity Fund invests in company stocks with different market capitalisation’s across diverse sectors and industries. Therefore, investors must align their investment objective with the fund objective to create wealth during the period.
Investment Strategy: The Fund Manager(s) invests in various stocks across market cap as mentioned by SEBI/AMFI, depending on the type of ICICI equity fund. ICICI equity mutual fund schemes aim to add the finest opportunities that the market has to offer. These Schemes maintain a disciplined yet flexible long-term strategy with the goal of long-term capital appreciation. Also, ICICI AMC uses a bottom-up or top-down approach to pick stocks with strong growth potential. Hence, aligning investors’ financial goals with fund strategy is essential.
Associated Risk: ICICI Equity Mutual funds may be affected by the different associated market factors like price/volume in capital markets, interest rates, changes in government policies, etc. Also, ICICI Equity Funds are sensitive to changes in the values of the securities they invest in, which might have a significant impact on their overall results. Therefore, ICICI Equity Fund managers take an active part in the active management of the portfolio to reduce risk and achieve its investment objectives. Furthermore, investors must understand the risk associated with ICICI Equity Mutual Funds before investing in them.
Tax on ICICI Equity Mutual Fund
An income arising from the sale of ICICI Equity Fund schemes generates a capital gain. Capital gain on ICICI Equity Mutual Fund is taxable depending on the holding period. The following table shows the taxation of ICICI Equity Mutual Funds –
Short Term Capital Gains (STCG)
Long Term Capital Gains (LTCG)
Holding Period
If holding period is less than 12 months
If holding period is more than 12 months
Taxation
Capital gains are taxable at 15% flat in investor’s hands irrespective of the income tax slab rate.
Capital gains up to Rs. 1 lakh is exempted. Above Rs. 1 lakh is taxable at the rate of 10%
