ICICI Prudential Exports and Other Services fund

ICICI Prudential Exports and Other Services turned heads in 2013 by generating a return of 43.59 per cent. These are the sort of returns one associates with technology and US-focused funds.

This is a multi-sector fund, unlike a typical sector fund, which reduces the concentration risk compared to other sector funds. It invests in services sector such as auto components, banking and financial services, healthcare, hotels, media and entertainment, trade and retail, IT and IT-enabled services, telecommunications, transportation and others.

The fund's long term performance is also good. It has a five-year annualised return of 24.56 per cent. Currently, technology and healthcare account for 77 per cent, will the tailwinds prevail?

Strategy

·         The fund seeks to optimise the risk-adjusted return by a mix of 'top-down macro and 'bottom-up' micro research.

·         Top sectors are healthcare (41 per cent and information technology (36.46 per cent).

·         It completely exited financial sector in December 2012.

·         The fund has an inclination towards large caps with an exposure of over 50 per cent and the average mid- and small-cap allocation is around 40 per cent.

·         The fund has a higher concentration in select stocks which helped it generate above average returns.

·         Since the fund had major investments in technology and pharma stocks, the fund also benefited from the rupee depreciation.

Portfolio

·         It has gained from investments in pharma stocks like Lupin and Sun Pharma and Dr Reddy's Laboratories.

·         Technology stocks like Infosys, Persistent Systems, HCL Technologies and Wipro too have given impressive returns.

·         TCS, Infosys, ICICI Bank, SBI, HDFC, Wipro, Infotech, Wabco, Techno Electric, Axis Bank and Container Corp. of India have generated highest profits for the fund in the past five years.

·         Small caps like Natco Pharma and Unichem Labs in healthcare and Persistent Systems and NIIT in technology have delivered highest return amongst the small caps.

The quantum of dividend shall be Rs 0.0389 per unit. The record date has been fixed as April 03, 2014.