Aditya Birla Sun Life Frontline Equity Fund Vs ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund and Aditya Birla Sun Life Frontline Equity Fund both the schemes are a part of large-cap category of equity fund. In simple terms, Large cap funds invest their money in shares of companies whose market capitalization is more than INR 10,000 Crores. These companies have a good reputation in their field and are also known as bluechip companies. They are huge in terms of size, human capital and market capitalization. Large-cap funds generally earn steady returns and profits as they invest in large businesses. These schemes are a good option for long-term investment. Though ICICI Prudential Bluechip Fund and Aditya Birla Sun Life Frontline Equity Fund belong to the same category yet; numerous differences exist between them. So, let us understand these differences through this article.

Aditya Birla Sun Life Frontline Equity Fund

Aditya Birla Sun Life (ABSL) Frontline Equity Fund’s objective is to attain long-term capital appreciation. It tries to attain this objective by Investing the entire fund money in equity and equity-related instruments of various sectors that form part of its benchmark index. ABSL Frontline Equity Fund uses S&P BSE 200 index as its base to build its Portfolio. Some of the top constituents of this scheme as on March 31, 2018, include HDFC Bank Limited, ICICI Bank Limited, ITC Limited, and Infosys Limited. Some of the highlights of ABSL Frontline Equity Fund are an investment in promising companies across industries, disciplined method of investing across various sectors, and wealth creation through equity investments. Mr. Mahesh Patil is the sole fund manager managing ABSL Frontline Equity Fund.

ICICI Prudential Bluechip Fund (Erstwhile ICICI Prudential Focused Bluechip Equity Fund)

ICICI Prudential Bluechip Fund (earlier known as ICICI Prudential Focused Bluechip Equity Fund) is a part of ICICI Prudential Mutual Fund and was launched on May 23, 2008. This scheme uses Nifty 50 as its benchmark index to construct its portfolio and is jointly managed by Mr. Sankaran Naren and Mr. Rajat Chandak. ICICI Prudential Bluechip Fund is suitable for individuals looking for long-term wealth creation by investing in an equity fund that predominantly invests in companies forming part of the large-cap category. As on March 31, 2018, some of the top constituents of this scheme of ICICI Prudential Mutual Fund are Maruti Suzuki India Limited, Larsen & Toubro Limited, ITC Limited, Power Grid Corporation of India Limited, and Infosys Limited. This scheme invests in companies that have a proven past performance record, capable of delivering consistent long-term returns, and strong fundamentals.

Aditya Birla Sun Life Frontline Equity Fund Vs ICICI Prudential Bluechip Fund

There are a number of differences that exist between both the schemes though they form part of the same category. So, let’s look at the differences between these schemes that are classified into four section, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

It is the first section in the comparison that includes comparable parameters such as Fincash Rating, scheme category, and current NAV. To begin with Fincash Rating, it can be said that both the schemes are rated as 4-Star schemes. Even the comparison of scheme category shows that both the schemes belong to the same category or Equity Large Cap. However, on account of NAV, both the schemes differ significantly. As on April 30, 2018, the NAV of ABSL Frontline Equity Fund was approximately INR 220 while of ICICI Prudential Bluechip Fund was around INR 40. The comparison of basics section is as follows.

Performance Section

Being the second section, it compares the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time intervals. The analysis of the performance section reveals that, in certain instances, ABSL’s scheme has done better while in others, ICICI Prudential’s scheme has performed well. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

This section analyzes the differences between the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section also reveals that for certain years, Aditya Birla Sun Life Frontline Equity Fund leads the race, while for other years, ICICI Prudential Bluechip Fund leads the race. The table given below shows the summary comparison of the yearly performance section.

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Other Details Section

Being the last section in the comparison, it includes parameters such as AUM, minimum SIP investment, minimum lumpsum investment, and others. The comparison of SIP investment reveals that both the schemes have same investment amount, that is, INR 1,000. However, there is a difference in the minimum lumpsum investment of both the schemes. The minimum lumpsum investment for ABSL Mutual Fund’s scheme is INR 1,000 and for ICICI Prudential Mutual Fund is INR 5,000. Even the comparison of AUM, reveals a difference between both the schemes. The AUM of ABSL Frontline Equity Fund was around INR 19,373 Crores and for ICICI Prudential Bluechip Fund was nearly INR 16,102 Crores. The table given below summarizes the comparison of other details section.

Growth of 10k Investments over the years