Kotak Standard Multicap Fund Vs ICICI Prudential Bluechip Fund

There are numerous differences between Kotak Standard Multicap Fund and ICICI Prudential Bluechip Fund though they belong to the same large-cap category. In simple terms, Large cap funds are the schemes that invest their corpus in equity and equity-related instruments of large-sized companies. These companies have a market capitalization of more than INR 10,000 Crores and are considered to be the market leaders in their field. Since large-cap schemes invest their corpus in big businesses, they generally give stable returns. In addition, even during economic downturns, the share prices of large-cap companies do not tend to fluctuate much. Large-cap companies are also known as bluechip companies. So, let us understand the differences between Kotak Standard Multicap Fund and ICICI Prudential Bluechip Fund by comparing various parameters through this article.

Kotak Standard Multicap Fund (Erstwhile Kotak Select Focus Fund)

The objective of Kotak Standard Multicap Fund is to generate appreciation in the capital invested in long-term tenure by Investing its accumulated fund money in shares of companies by focusing on few sectors. Kotak Standard Multicap Fund was launched on September 11, 2009, and is managed by Kotak Mutual Fund. As on March 31, 2018, some of the constituents of this Mutual Fund’s Portfolio consisted of HDFC Bank Limited, Larsen & Toubro Limited, Reliance Industries Limited, and ICICI Bank Limited. The benchmark index used by Kotak Standard Multicap Fund to build its portfolio of assets is Nifty 200 Index. The risk-appetite of Kotak Standard Multicap Fundis moderately high and is suitable for individuals seeking long-term capital growth. The sole fund manager managing Kotak Standard Multicap Fund is Mr. Harsha Upadhyaya.

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

ICICI Prudential Bluechip Fund (earlier known as ICICI Prudential Focused Bluechip Equity Fund) was incepted in the year 2008 and it uses NIFTY 50 Index as its benchmark to construct its portfolio. ICICI Prudential Bluechip Fund is suitable for individuals seeking for wealth creation in the long-term by investing in a fund that in-turn invests its corpus in stocks of large-cap companies. Maruti Suzuki India Limited, Motherson Sumi Systems Limited, Larsen & Toubro Limited, and ITC Limited are some of the top constituents of the scheme’s portfolio as on March 31, 2018. The scheme uses a benchmark hugging strategy which ensures that the portfolio is well-diversified across sectors thereby reducing the concentration risk. Mr. Sankaran Naren and Mr. Rajat Chandak jointly manage this scheme of ICICI Prudential Mutual Fund.

Kotak Standard Multicap Fund Vs ICICI Prudential Bluechip Fund

Though both the schemes belong to the same category, nevertheless; they differ on account of numerous parameters. So, let’s understand the differences between these schemes that are classified into four section, listed below as follows:

Basics Section

It is the first section in the comparison that includes elements like Current NAV, Fincash Rating, and scheme category. The comparison of current NAV states that both the schemes differ on account of NAV. As on April 24, 2018, the NAV of ICICI Prudential Bluechip Fund was approximately INR 40 while of Kotak Standard Multicap Fund is around INR 33. With respect to Fincash Rating, it can be said that Kotak’s scheme is rated as 5-Star while ICICI’s scheme is rated as 4-Star. The comparison of scheme category also shows that both the schemes belong to the same category of Equity Large Cap. The summary comparison of the basics section is as shown in the table given below.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns is done in the performance section. These CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of performance section reveals that at certain time periods, ICICI Prudential Bluechip Fund leads the race, while in others; Kotak Standard Multicap Fund leads the race. The table given below shown the summary comparison of the performance section.

Yearly Performance Section

This being the third section, compares the absolute returns of both the schemes generated for a particular year. The comparison of absolute returns reveals that in almost all the instances, Kotak Standard Multicap Fund leads the race. The comparison of the yearly performance section is tabulated as follows.

Other Details Section

It is the last section in the comparison of the schemes. The comparable elements forming part of other details section include AUM, minimum SIP investment, and minimum lumpsum investment. The minimum lumpsum investment for both the schemes is similar, that is, INR 5,000. However, there is a difference in the minimum SIP investment of both the schemes. In case of Kotak Mutual Fund’s scheme, the SIP amount is INR 500 and for ICICI Prudential Mutual Fund’s scheme, it is INR 1,000. The comparison of AUM also shows a difference in both the schemes. As on March 31, 2018, the AUM of Kotak Standard Multicap Fund is approximately INR 17,853 Crores while of other is nearly INR 16,102 Crores. The table given below summarizes the comparison of the other details section.

Growth of 10k Investments over the years