Since October ’09, S&P Nifty has been hovering in the range of 4,900 – 5,180. Soaring food prices and fears over monetary contraction have been the catalyst for such anemic market. Furthermore, valuations no longer appear cheap when compared with other emerging markets. Though economic recovery is well underway, there is a lack of clear direction for the market. In such a milieu, we advise investors to play it safe. Hence, we recommend investing in ICICI Prudential Dynamic Plan (IPDP). The scheme is characterized with large-cap exposure, sector-diversification and steady returns.
IPDP has proven to be a good defensive play and has weathered the market volatility well in the past. The fund’s proven track record along with the strong credentials of its investment team makes it a good bet for long-term equity investors and for relatively risk-averse, investors who seek to invest in a well-blended equity fund with a degree of downside protection. We recommend investing in IPDP in the diversified-fund category.