"Good companies at Discounted prices" – the value investment philosophy of ICICI Prudential Mutual Fund is the theme behind launching the fund. It is a Close - Ended Equity Scheme which opens for subscription on Feb 28, 2014 and closes on March 14, 2014
The fund portfolio would comprise of focused 25-30 high conviction stocks by following the 'value investing philosophy'. The investment objective of the Scheme is to provide capital appreciation by investing in a well diversified portfolio of stocks through fundamental analysis.The fund aims to –
- Find commendable companies at reasonable price rather than generic companies at bargain price.
- Capture profits by selling equities or using derivatives.
- Declare commensurate dividends.
- Invest in multi-cap stocks.
Value investing is an investment strategy that seeks to buy stocks of companies that have been undervalued by the market. The basic theme of this investment strategy is buying stocks at less than their intrinsic value as it generally involves buying securities whose shares appear under priced by fundamental analysis. Value investing focuses on the business and its fundamentals rather than external influences on the stock’s price. It does so as it believes that the market overreacts to good and bad news, resulting in stock price movements that are not in sync with the company's fundamentals. The result is an opportunity for investors to profit by buying when the stock is underpriced. "Value Investing is an exciting opportunity for investors" according to Nimesh Shah, MD & CEO, ICICI Pudential AMC.
To know more about 'Value Investing' enjoy the video below –
To know more about Prudential ICICI Value Fund – Series 3, please go through the presentation –