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ICICI Prudential Value Fund Rename Mandate Portfolio Costs Exit Load Risk and Tax

Summary : ICICI Prudential Value Fund is the current name of ICICI Prudential Value Discovery Fund. The AMC changed the name with effect from 16 June 2025, so the rename did not create a separate new scheme or erase the earlier track record. It is an open-ended equity scheme following a value-investment strategy. The scheme searches for companies whose market price appears below the manager’s assessment of intrinsic value, but that assessment can remain unrecognised for long periods or prove wrong. The official factsheet identifies the NIFTY 500 Total Return Index as benchmark and shows an inception date of 16 August 2004. Current scheme information should be read with the SID, KIM, addenda, portfolio and daily expense disclosures. The published exit-load structure is one per cent of applicable NAV for redemption or switch-out within twelve months of allotment and nil thereafter. Direct and Regular Plans hold the same portfolio but have different expense structures; Growth and IDCW options have different cash-flow and tax consequences. This article explains the rename, mandate, portfolio-review method, costs, liquidity, riskometer and Indian equity-fund tax without ranking the scheme or predicting returns.

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Current Scheme Identity and 2025 Rename

The AMC’s official material states that ICICI Prudential Value Discovery Fund became ICICI Prudential Value Fund on 16 June 2025. Investors should use the current name in transactions and searches but should treat older statements and folios under the former name as the same scheme history. The change was a naming update, not a fresh NFO. Portfolio, units and holding periods do not reset merely because the displayed scheme name changed.

Scheme Attribute Current Position Practical Meaning
Current name ICICI Prudential Value Fund Use this name for current AMC documents and transactions
Former name ICICI Prudential Value Discovery Fund Older folios and performance history belong to the same underlying scheme
Category Value Fund Portfolio follows a value-investment strategy within SEBI category rules
Structure Open-ended equity scheme Purchases and redemptions are generally available subject to transaction rules
Benchmark NIFTY 500 TRI Comparison includes a broad-market total-return index
Inception 16 August 2004 The 2025 rename did not restart inception

A Value Category Label Does Not Ensure a Cheap Portfolio

Value investing depends on estimates of normalised earnings, assets, cash flows, balance-sheet strength and the discount between price and assessed worth. A low price-to-earnings or price-to-book ratio alone is not proof of value. Cyclical profits can make a company appear cheap near a peak, while governance, leverage or business disruption can make a discount persistent. The scheme manager may also hold cash, large companies or positions that differ from a reader’s narrow idea of a value portfolio.

Mandate Benchmark and Portfolio Review

The scheme’s investment objective is to seek long-term capital appreciation through a diversified portfolio of value-style equity and equity-related instruments. An objective is not a guarantee. The NIFTY 500 TRI gives a broad reference set, but the scheme can differ materially by sector, market capitalisation, cash level and security weights. Tracking difference is therefore expected and is not automatically evidence of an error.

The official digital factsheet available during this review presented the scheme as ICICI Prudential Value Fund and displayed a dated portfolio snapshot. Portfolio data should always be tied to its disclosure date. Security weights can change after month-end through market movement or transactions. A useful review focuses on sector concentration, top holdings, cash, market-cap mix, turnover and whether the disclosed portfolio still reflects a genuine value style rather than judging the scheme from one month’s return.

Portfolio Question What to Inspect Risk Revealed
How concentrated are the largest holdings? Top ten weights and changes across monthly disclosures Company-specific loss can dominate outcomes
Which sectors carry the thesis? Financials, energy, industrials and other sector weights A value cycle may be concentrated in a few industries
How broad is market-cap exposure? Large, mid and small-cap allocations Liquidity and drawdown behaviour can differ
Is cash material? Cash and money-market allocation Cash can cushion falls but lag a rising market
Has style changed? Valuation, turnover and sector movement over several months A single snapshot can hide style drift

Riskometer Must Be Read With the Portfolio Date

Equity value funds commonly carry a high or very high risk classification because NAV responds to market, sector, issuer, liquidity and valuation changes. Investors should check both the scheme riskometer and benchmark riskometer in the latest factsheet. A past risk label does not assure future volatility, and a category classification does not protect capital.

Direct and Regular Plans Growth and IDCW Options

Direct and Regular Plans invest in the same portfolio. The difference is distribution expense, so the Direct Plan normally has a lower expense ratio and a different NAV. Direct is not automatically appropriate for every investor because suitability depends on the ability to select, monitor and transact without distributor assistance. Regular Plan commission is reflected in expenses rather than billed separately to the investor.

Growth leaves distributable surplus in the scheme NAV. IDCW permits distributions when declared from distributable surplus; the amount and timing are not guaranteed, and NAV falls to the extent of distribution and applicable levies. IDCW is not interest. The option selected can affect cash flow and tax reporting, so the folio confirmation should be checked after every transaction.

Expense Ratio Exit Load and Transaction Cut Offs

The total expense ratio is deducted from scheme assets before NAV is reported and can change within regulatory limits. A historical factsheet figure is not a permanent tariff. Investors should check the AMC’s current daily TER disclosure for the relevant plan on the transaction date. Even a modest annual percentage difference compounds over a long holding period, but TER is only one element of suitability and should not be used as a return forecast.

The disclosed exit load is one per cent for redemption or switch-out within twelve months from allotment and nil after twelve months. The rule applies to the units being redeemed, commonly on a first-in-first-out basis within a folio. Exit load is not a statutory lock-in: units may generally be redeemed earlier, but the load reduces proceeds. A switch from Regular to Direct or Growth to IDCW is normally treated as a redemption and fresh purchase, so exit load and tax can apply.

The applicable NAV depends on the transaction type, cut-off, receipt of a valid request and realisation of funds under current SEBI and AMC rules. A timestamp alone may not secure the desired NAV if funds are not available for utilisation. Online platform status should be reconciled with the AMC or registrar confirmation, especially near holidays or market cut-offs.

Indian Tax Treatment for Equity Oriented Fund Units

When the scheme satisfies the statutory equity-oriented-fund conditions, a transfer of units held for not more than twelve months is generally short term. For transfers on or after 23 July 2024, qualifying short-term capital gains under section 111A are generally taxed at twenty per cent, while qualifying long-term gains under section 112A are generally taxed at twelve and one-half per cent on aggregate gains exceeding ₹1.25 lakh in the financial year. Surcharge, cess, residence, status and transaction conditions can change the final liability.

IDCW is generally taxable in the investor’s hands at the applicable rate, with TDS provisions potentially applying when statutory conditions and thresholds are met. Capital-gain computation requires purchase-wise cost, date, units, exit load and consideration. A switch is taxable even when no cash reaches the bank. Non-residents, trusts, businesses and investors with grandfathered pre-2018 holdings require additional analysis.

Frequently Asked Questions

Is ICICI Prudential Value Discovery Fund discontinued?

No. It was renamed ICICI Prudential Value Fund with effect from 16 June 2025. The underlying scheme history continues.

Did the rename reset the holding period?

No. A name change by itself does not reset allotment dates or acquisition cost.

Does value investing guarantee downside protection?

No. Assessed value can be wrong or remain unrecognised, and the portfolio can suffer substantial market loss.

Are Direct and Regular Plans different portfolios?

No. They share the scheme portfolio but have different expense structures and therefore different NAVs.

Is IDCW a fixed dividend?

No. IDCW depends on distributable surplus and trustee approval, is not assured and reduces NAV when paid.

Does the one-year exit load create a lock-in?

No. Redemption is generally allowed, but one per cent exit load applies to relevant units redeemed or switched within twelve months.

Can a switch to Direct Plan trigger tax?

Yes. A switch is normally treated as redemption from one plan and purchase into another, so capital gains and exit load may arise.

Should a current TER be taken from an old factsheet?

No. Use the AMC’s current daily TER disclosure for the relevant plan; factsheet figures are dated snapshots.

Key Takeaways

  • ICICI Prudential Value Fund is the renamed ICICI Prudential Value Discovery Fund, not a separate new scheme.
  • The value mandate can remain out of favour and carries market, sector, valuation, liquidity and manager-selection risks.
  • Direct and Regular Plans share a portfolio but differ in expenses; Growth and IDCW options differ in cash flow and tax treatment.
  • Exit load, current TER, applicable NAV, purchase-lot dates and tax must be checked before redemption or switch.

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Disclaimer: This article is an educational review of ICICI Prudential Value Fund based on official AMC, SEBI, AMFI and Indian tax materials checked on 8 November 2026. The scheme name, SID, KIM, addenda, investment mandate, benchmark, portfolio, fund managers, asset size, riskometer, total expense ratio, exit load, minimum transaction amount, cut-off procedure and tax law can change after that date. Portfolio, NAV, expense and risk data are dated disclosures and must not be treated as live values. Mention of the scheme, AMC, benchmark, sectors or securities is not an offer, solicitation, ranking, return forecast or recommendation to invest, redeem, switch or select a plan or option. Mutual-fund units are subject to market, valuation, concentration, liquidity, governance, style, operational, cyber, regulatory and tax risks; NAV can fall and capital is not guaranteed. A value strategy may underperform for extended periods and a manager’s estimate of intrinsic value may be wrong. Direct and Regular Plans, Growth and IDCW options, SIPs and lump-sum purchases can produce different cost, cash-flow and tax outcomes. Suitability depends on the reader’s goals, time horizon, risk capacity, liquidity, existing portfolio, tax status and need for advice. Readers must review the latest official scheme documents and consult a SEBI-registered investment adviser and chartered accountant where appropriate. Tax rates and classifications depend on statutory conditions and individual facts. TaxGuru accepts no responsibility for any investment loss, NAV movement, missed cut-off, exit load, tax demand, TDS issue, platform failure, operational delay or decision made using this article.

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Author Info

CA Sandeep Kanoi
Qualification: Graduate, CA in Job / Business, DD
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 24,060

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