Is investing in ICICI Prudential Value Discovery fund right at this point of the market

ICICI Prudential Value Discovery Fund is diversified (multi-cap) equity fund. The fund has been one of the best performing equity funds in India for a long period of time. Previously this fund was a midcap fund and as its AUM grew beyond a certain level, ICICI Prudential Value Discovery Fund shifted a big part of its equity allocation to large cap stocks. Since large cap stocks form the major part of the portfolio of this fund, it is not reasonable to expect ICICI Prudential Value Discovery Fund to deliver the same level of returns as it did over the last 5 or 10 years. However, this is a highly rated diversified equity fund. The fund manager of this scheme follows the value style of investing and as such is a good choice for long term investment, since the market is now at an all time high and there are a few valuation related concerns. Value investing will limit downside risks in bear markets and give excellent returns in the long term. However, you should be patient because returns of value funds can remain subdued for a period of time.

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