Equity funds seek to provide maximum growth of capital with secondary emphasis on dividend or interest income. They invest in common stocks with a high potential for rapid growth and capital appreciation.An equity fund gives an exposure to the stock market. The fund would have long-term growth potential but provide low current income. They are not suitable for investors who are risk averse and are focused on maximizing current income or conserving principal.
The funds offered under this category are the Prudential ICICI Growth Plan, Prudential ICICI FMCG Fund, Prudential ICICI Technology Fund, Prudential ICICI Tax Plan, Prudential ICICI Index Fund, Prudential ICICI Power, Prudential ICICI Dynamic Plan, Prudential ICICI Discovery Plan, Prudential ICICI Emerging S.T.A.R. Fund, Prudential ICICI Infrastructure Fund and Prudential ICICI Services Industries Fund.
The overriding objective of the AMC in managing its investments is to produce a consistently above average long-term performance.
The AMC believes in a bottom-up approach to stock picking. This means that the focus is on the fundamental quality of companies as opposed to a focus on favoured sectors and market movements.
The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio.This would involve consistently examining all stocks under an internally developed research framework. A stock would be considered or inclusion in the portfolio when the valuation does not adequately capture its underlying fundamental value in the AMC's opinion based on the above factors.
The AMC's portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take advantage of the opportunities that present themselves from time to time because of inefficiencies of the securities markets. The AMC will endevour to balance the increased cost on account of higher portfolio turnover with the benefits derived therefrom.
No comments:
Post a Comment