ICICI Prudential Flexicap Fund NAV Nearly Doubles In Five Years, Scheme Outperforms Benchmark Index

ICICI Prudential mutual fund has announced that the ICICI Prudential Flexicap Fund has completed five years. The mutual fund house made the announcement via a release on July 17. Notably the fund which was launched on July 17, 2021 has delivered strong performance.

The scheme has seen its Net Asset Value nearly doubling and outperforming its underlying benchmark.The open ended equity scheme invests across largecap, midcap, and smallcap stocks.

How Has ICICI Prudential Flexicap Fund Performed Since Inception

According to the release the scheme has managed to outperform its benchmark the BSE 500 Total Returns Index (TRI) across varying market conditions. For example, a lump sum investment of Rs 10 lakh made on July 17, 2021, the  inception date of the scheme would be worth approximately Rs 19.61 lakh as of June 30, 2026 growing at a Compounded Annual Growth Rate of 14.55 percent.

On the other hand if the same amount was invested in the BSE 500 TRI itself it would have yielded Rs 17.44 lakh, representing a CAGR of 11.88 percent. Since its inception, the scheme has also managed to outperform the broader market itself as the Nifty 50 has delivered a CAGR of 9.78 percent between the scheme’s inception date and June 30. Additionally the Net Asset Value per unit of the scheme stood at Rs 19.61 per unit as of June 30, 2026.

In a shorter time horizon the scheme has continued to outperform both its underlying index and the Nifty 50. In the past one year even as D-street dealt with economic pressures such as trade tariffs and the continued tensions in the Middle East the scheme delivered a return of 5.09 per cent. On the other hand the BSE 500 and the Nifty 50 delivered negative returns of -1.96 per cent and -5.42 per cent.

For systematic investments, a monthly Systematic Investment Plan of Rs 10,000 into the scheme’s growth option since inception would total to an investment of Rs 6 lakh. This Rs 6 lakh investment would have grown to approximately Rs 8.47 lakh as of June 30, 2026 at a CAGR of 13.83 percent. On the other hand a Rs 6 lakh benchmark investment would have yielded a CAGR of 10.43 per cent.

What Drove ICICI Prudential AMC Flexi Cap Fund's Outperformance

As per the release various factors have aided the scheme’s outperformance in the past five years. One of the primary drivers of the outperformance is the scheme’s high active share maintained. Notably, the scheme is operated in a benchmark agnostic manner and its active share deviation exceeds 60 per cent. This in turn allows the fund manager to back high conviction ideas.

The company claims the other major factor behind the outperformance is the scheme's potential to recover quickly after broader market drawdowns. The market capitalisation allocation of the scheme has changed significantly since inception due to its bottom up stock selection process.

As of May 2026, the portfolio maintained an allocation of 61 percent in large cap stocks, 9 percent in mid cap stocks, and 25 percent in small cap stocks. On the other hand in June 2023, the scheme predominantly allocated more money to largecaps as they made up 77 per cent of the scheme’s total allocation while midcaps and smallcaps made up 10 per cent each respectively.

What Does ICICI Prudential Flexicap Fund Invest In

According to the release the fund house builds its portfolio around a balanced strategy where 60 to 65 per cent of the assets are growth oriented, while 30 to 35 per cent are exposed to contra or cyclical themes.

To allocate money towards growth opportunities, it selects companies which have a strong execution track record, professional management, high future visibility, and consistent market share gains. On the other hand, for contra opportunities, the company adopts a buy and hold approach during major market events.

As of June 30, 2026, the scheme’s portfolio is titled towards the consumption based sectors as it anticipates the sector to grow on the back of retailing benefits from structural tailwinds, rising income, and premium consumption growth. The scheme currently has positioned allocations towards the auto sector, retailing, banks and consumer discretionary firms.

ICICI Prudential Flexicap Fund Investment Philosophy

The core investment philosophy is built around the idea that growth creates value, utilising a pure bottom up stock picking approach across market capitalizations.

Reminiscing on the scheme’s performance in the last five years, Rajat Chandak, Senior Fund Manager at ICICI Prudential AMC, said in the release that it has been a rewarding yet challenging journey.

“The last five years have been a rewarding yet challenging journey. Throughout this period, we have remained committed to our core investment philosophy of identifying quality businesses through bottom-up research, backing strong management teams, and investing with a long-term perspective,” Chandak said.

Chandak added that instead of making tactical cash calls, the fund’s management has focused on owning businesses with sustainable growth potential through market cycles.

“Rather than making tactical cash calls, our focus has been on owning businesses with sustainable growth potential and holding them through market cycles. We believe that disciplined stock selection and staying true to our investment framework have been the key drivers of the fund's journey so far. As we look ahead, while markets will continue to witness periods of uncertainty and volatility, we remain optimistic about the long-term opportunities in Indian equities and continue to focus on businesses that can deliver sustainable growth and create long-term wealth for our investors,” Chandak said.