ICICI Dynamic Plan – Suitable for Long term (10 to 20 years) ?

POSTED BY VijayShankar ON April 12, 2014 9:55 pm COMMENTS (9)

I am planning to invest Rs.15000 per month in ICICI Prudential Dynamic Plan for long term (10 to 20 years). This fund is investing in 65% large companies, 25% mid sized companies and 8 to 9% on small companies.

Questions

1) In some website this fund is classified as Diversified Equity and in some large cap. Does it comes under large cap?

2) For long term is it better to go with only large cap or mixture of all like ICICI Prudential Dynamic Plan.

3) I am also doing Rs.7000  with Franklin India Bluechip which is pure large cap.

So to get a diversification – i am considering  ICICI Prudential Dynamic Plan. whats your suggestion?

Thank You

Vijay

9 replies on this article “ICICI Dynamic Plan – Suitable for Long term (10 to 20 years) ?”

  1. ashalanshu says:

    Dear Rajiv, what I mean is, we can create good fortune by spotting the future large caps now when they are small caps or midcaps. Once they become Largeccaps, it ‘ll be a known secret to all of us and hence the chance of earning better than others ‘ll not be there. So if someone is interested in creating good fortune, investing in future largecaps when those are merely small or midcaps is the key to success.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Dilip, any %age you are comfortable with. 🙂

    Thanks

    Ashal

  3. dilip lalwani says:

    DEAR ASHAL
    means we should allocate to midcap and smaller cap also,what do u suggest what % shd go towards mid and small.
    thanks
    dilip

  4. ashalanshu says:

    Dear Vijay, I mean from diversification point of view, your money should go into future large caps. 🙂

    Thanks

    Ashal

    1. Rajiv94 says:

      Hi Ashal

      Iam not cleared with your answer… future Large Caps. how we can determine what future Large Caps would be in future?. And, which Fund are those that comes under this.?

  5. VijayShankar says:

    Hi Ashal,

    No.
    Can you explain what you are trying to say?

    Just to clarify.

    Franklin India Blue Chip – 7k per month
    ICICI pru Dynamic – 15k per month

    I am not adding 1 more fund.

    Do you find these 2 itself is identical?

    http://lt.morningstar.com/dk7pkae7kl/fundcompare/default.aspx?SecurityTokenList=F00000PDXQ%5D2%5D0%5DFOIND$$ALL|F00000PE3K]2]0]FOIND$$ALL&CurrencyId=INR&LanguageId=en-GB

    Thank you
    Vijay

  6. ashalanshu says:

    Dear Vijay, just for sake of argument, INFY was born Large cap? Wipro was born Largecap, L&T or HDFC or Reliance or TCS all were born large caps?

    Thanks

    Ashal

  7. ashalanshu says:

    Dear Vijay, why do you want to add one more fund? If diversification is your answer, please check the underlying stock portfolio of the 2 funds you mentioned and check, are you really diversified?

    Thanks

    Ashal

    1. VijayShankar says:

      Hi Ashal,

      Thanks for your quick answer.

      Yes ICICI Pru Dynamic is investing 25 to 30% on Mid cap companies whereas Franklin India Blue chip is only focused on large cap. So there is some diversification.

      I do agree there is a overlap (30 to 40%) in stock in stock of companies related to large cap.

      I think relying completely on mid-cap (80+% mid cap) may not be good option for long term goals.

      Whats your suggestion ?

      Thank You
      Vijay

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