ICICI Prudential Mutual Fund (ICICI Pru MF) has notably maintained the lowest exposure to small and mid-cap stocks among India's top five asset management companies (AMCs).

As of December 31, 2024, data from Morningstar indicates that small and mid-cap stocks constituted approximately 21.19% of ICICI Pru MF's total assets under management (AUM) in pure equity schemes.

This conservative stance aligns with the views of ICICI Pru MF's Chief Investment Officer, S. Naren, who has previously cautioned investors about the high valuations in the small and mid-cap segments. He advised investors to consider reducing their holdings in these segments due to potential overvaluation concerns.

In comparison to its peers, ICICI Pru MF's exposure to small-cap stocks is particularly modest, accounting for just 9.58% of its equity scheme AUM—the only fund house among the top five with a single-digit small-cap exposure. Its mid-cap exposure stands at 11.61%, also the lowest among the leading AMCs.

When considering the total AUM, which includes equity, debt, and hybrid funds, ICICI Pru MF's combined small and mid-cap exposure is 12.43%, reinforcing its cautious investment approach.

This prudent strategy reflects ICICI Pru MF's commitment to managing risk and delivering consistent returns to investors by focusing more on large-cap stocks, which are generally considered more stable and less volatile than their small and mid-cap counterparts.