Despite recent recovery in small and midcap stock prices, Anish is very clear that his preference from a risk-reward perspective continues to be large caps.
ICICI Prudential Bluechip Fund has 95% of its assets in large cap stocks even as it is allowed upto 20% outside of large caps – as Anish is not finding compelling value in midcaps.
An interesting feature of its performance is that each year it posts a healthy second quartile performance, which over periods of 3, 5 and10 years allow it to showcase consistent top quartile performance. Anish values consistency over table topping strategies.
The fund mandate allows Anish an active share of around 40% in this fund while other higher risk funds such as Business Cycles and Focused allow him higher active shares.
He continues to favour domestic cyclicals as he sees earnings growth stories continuing in this theme. Since valuation comfort is not really there in any sector, he feels it is better to stick with sectors with strong earnings growth.
He continues to be cautious on IT sector and remains circumspect on metals and mining.