ICICI Prudential ESG Exclusionary Strategy Fund
Direct · GrowthAI Summary
The fund has delivered strong long-term alpha versus the NIFTY 50, with a 3Y CAGR of 9.79% against the benchmark's 5.26% and a 5Y CAGR of 8.5% versus 4.44%, producing alphas of 4.37% and 3.69% respectively. However, its SIP XIRR of 5.93% over 1Y and 13.27% over 5Y trails the category average SIP XIRR of 10.65% and 17.46%, indicating underperformance versus thematic peers despite benchmark outperformance. Recent performance is weak, with a -10.5% calendar year return in 2026 following a modest 6.66% in 2025.
The fund exhibits a defensive risk profile, with consistently low downside capture (75.45% to 90.64%) across all periods, meaning it has fallen significantly less than the NIFTY 50 in corrections. Its Calmar ratios of 0.949 (3Y) and 0.7128 (5Y) reflect reasonable risk-adjusted returns, and only 3 drawdown events exceeding 10% have occurred. The lengthy recovery from max drawdown (353 days over a 242-day drawdown) suggests recoveries can be slow, so patience is required during corrections.
The portfolio is concentrated in financials, with Banks alone at 24.3% and the top two holdings being HDFC Bank (9.05%) and ICICI Bank (7.75%). Automobiles (10.6%), Pharmaceuticals (9.5%), Insurance (6.3%), and Retailing (6.2%) round out the top sectors, giving the fund a large-cap quality tilt consistent with its ESG exclusionary mandate. With 52 total holdings and a top-10 weight of roughly 47.4%, diversification is adequate though sector concentration in banks is notable.
Against the Sectoral/Thematic category, the fund lags on SIP XIRR at every horizon — 18.2% vs 16.23% at 3Y is the only period where it leads, while it trails meaningfully at 5Y (13.27% vs 17.46%) and 1Y (5.93% vs 10.65%). Its ESG exclusionary approach constrains the universe, which likely explains the gap versus more flexible thematic peers. The consistent positive alpha versus the NIFTY 50 across 1Y to 7Y windows demonstrates genuine benchmark-relative skill even if category-relative standing is mixed.
This fund suits investors seeking a defensive, ESG-conscious equity allocation with lower downside capture rather than aggressive thematic returns. A horizon of at least 5 years is appropriate given the 5Y SIP XIRR of 13.27% and the fund's slow drawdown recoveries. Investors should tolerate periods of category underperformance and moderate volatility, and it is best used as a satellite holding rather than a core portfolio position.
- Consistent positive alpha versus NIFTY 50 across all periods from 1Y to 7Y, including 4.37% over 3Y and 3.69% over 5Y
- Low downside capture of 75.45% to 82.62% over longer horizons, providing strong protection in market corrections
- Diversified 52-stock portfolio with a quality large-cap tilt led by HDFC Bank and ICICI Bank
- SIP XIRR trails the category average at 1Y (5.93% vs 10.65%) and 5Y (13.27% vs 17.46%), signaling underperformance versus thematic peers
- Heavy sector concentration in Banks at 24.3% of NAV creates vulnerability to financial sector weakness
- Weak recent momentum with a -10.5% calendar year return in 2026 and a 1Y Calmar ratio of just 0.7707
Generated on 24-10-2026, 3:12 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.56 L | 14.3% | -26.1% | 62.1% |
| 3 Years | ₹36.00 L | ₹47.60 L | 18.2% | -2.6% | 36.0% |
| 5 Years | ₹60.00 L | ₹80.43 L | 13.5% | 7.1% | 18.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 14.3% | 14.3% | 10.6% | +0.0% |
| 3 Years | 18.2% | 11.0% | 16.2% | +7.1% |
| 5 Years | 13.5% | 10.4% | 17.4% | +3.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 14.7% | 11.2% | -14.0% | 52.8% | 0.50 | 1.52 | 77% | — | — |
| 3 Years | 18.2% | 18.1% | 9.1% | 26.1% | 3.95 | — | 100% | — | — |
| 5 Years | 13.6% | 13.1% | 8.2% | 19.9% | 2.38 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -2.70 | 0.93 | 89.2% | 92.8% | -14.0% | -12.7% |
| 3 Years | +3.84 | 0.87 | 89.2% | 83.5% | 9.4% | 5.4% |
| 5 Years | +3.66 | 0.82 | 84.1% | 78.6% | 8.5% | 4.5% |
| 7 Years | +2.42 | 0.79 | 81.0% | 75.9% | 11.3% | 9.6% |
| 10 Years | +1.23 | 0.79 | 81.0% | 75.9% | 7.8% | 6.6% |
| 12 Years | +0.77 | 0.79 | 81.0% | 75.9% | 6.5% | 5.5% |
| 15 Years | +0.33 | 0.79 | 81.0% | 75.9% | 5.1% | 4.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 9.05% |
| 2 | ICICI Bank Ltd. | 7.75% |
| 3 | Sun Pharmaceutical Industries Ltd. | 5.47% |
| 4 | TVS Motor Company Ltd. | 4.90% |
| 5 | Axis Bank Ltd. | 4.55% |
| 6 | Maruti Suzuki India Ltd. | 4.04% |
| 7 | Avenue Supermarts Ltd. | 3.34% |
| 8 | Bharti Airtel Ltd. | 2.89% |
| 9 | Eternal Ltd. | 2.82% |
| 10 | Interglobe Aviation Ltd. | 2.60% |