A Broad-Based Fund

Prudential ICICI Growth is a diversified equity fund. In its close to three-year tenure, the dividend plan of the fund has paid three dividends aggregating to 130 per cent.

With a bottom up strategy, the fund sought to invest in companies with established business model and strong cash flows. Further, the fund benchmarked its portfolio to the S&P CNX Nifty, seeking to hold stock and sector specific limits in line with the Index. With this strategy, the fund built a quality oriented diversified portfolio, with a good blend of growth and cyclical stocks.

Technology, healthcare and consumer goods were consistently the top holdings of the fund. With the market upturn in 1999, this well-knit strategy yielded the fund 188 per cent, leaving Nifty far behind at 70 per cent.

Beginning 2000, the fund turned overweight on software and telecom stocks, which accounted for 51 per cent at the peak of the rally. Even while the fund struck to its stock specific limits, quality picks such as Infosys and Dr Reddy