Hugely tilted allocation in Large Caps, ICICI Pru Value Discovery has successfully managed to contain losses while earning fabulous returns

ICICI Pru Value Discovery follows a valuefocussed approach to investing with a significant tilt towards largecap stocks. In this manner, the fund retains safety, which has helped in its performance. Although, the fund does not follow any defined marketcap allocation, it follows a contrarian approach by avoiding investments in overfancied stocks and sectors. Not only does the fund race ahead during bull markets, but it also contains losses much better than the benchmark, as seen during the downturns of 2011 and 2013.

The value and contrarian bets have not worked always though. For instance it exited Motherson Sumi earlier than it should have. At the same time, by staying off PSU banks it has done well for itself. For a growth seeking investor, this fund has the necessary ingredients to play safe by gaining when the market surges and contain the losses when they are flat or fall.