ICICI Prudential PSU Equity Fund
Direct · GrowthAI Summary
ICICI Prudential PSU Equity Fund has delivered strong outperformance versus the NIFTY 50 across all long-term windows, with a 3Y lump-sum CAGR of 24.03% against the benchmark's 7.75% and alpha of 16.22%. On the primary SIP metric, its 1Y XIRR of 32.71% and 3Y XIRR of 18.32% beat the category averages of 14.1% and 16.82% respectively. Calendar year returns have been uneven, however, ranging from 54.11% in 2023 to 3.53% in 2026 YTD, reflecting the cyclical nature of PSU equities.
The fund shows favorable risk-adjusted behavior with a 3Y Calmar ratio of 1.216 and downside capture of 91.95% over 3Y (82.68% over longer windows), meaning it falls less than the benchmark while capturing more upside (111.46% over 3Y). Only 3 drawdown events exceeded 10%, and the maximum drawdown was modest at -0.23%, though recovery took 347 days with a 211-day drawdown duration. Beta near 1.0 over 3Y (1.0475) suggests market-like volatility with better-than-market downside resilience.
The portfolio is concentrated in PSU heavyweights, led by State Bank of India at 16.36% of NAV, followed by NTPC (9.47%) and Power Grid (7.58%), with the top 10 holdings accounting for roughly 62% of the fund. Sector exposure is heavily tilted toward Banks (22.6%), Power (19.3%), and Aerospace & Defense (11.0%), with energy-related sectors adding another ~19%. With 46 total holdings, diversification at the stock level is reasonable, but thematic PSU concentration remains inherent to the mandate.
The fund outpaces its Sectoral/Thematic category on SIP XIRR at both 1Y (32.71% vs 14.1%) and 3Y (18.32% vs 16.82%), indicating above-average execution within the PSU theme. Long-term lump-sum CAGRs of 18.17% (5Y) and 12.66% (7Y) versus benchmark returns of 6.05% and 4.29% demonstrate sustained alpha over extended periods. Consistency across calendar years is mixed, with sharp swings between 54.11% (2023) and single-digit returns in 2022, 2025, and 2026.
This fund suits investors with high risk tolerance who understand the cyclical, policy-driven nature of PSU stocks and want tactical thematic exposure alongside a diversified core portfolio. A time horizon of at least 5-7 years is advisable given the return volatility across calendar years. It should be sized as a satellite allocation rather than a core holding, as sector concentration can lead to prolonged underperformance phases.
- Consistent alpha over the NIFTY 50 across all windows from 1Y to 15Y, including 16.22% alpha over 3Y
- Superior SIP XIRR versus category averages at both 1Y (32.71% vs 14.1%) and 3Y (18.32% vs 16.82%)
- Favorable capture profile with 3Y upside capture of 111.46% against downside capture of 91.95%, plus a solid 3Y Calmar ratio of 1.216
- High concentration in cyclical PSU sectors — Banks (22.6%), Power (19.3%), and energy (~19%) — exposes investors to policy and commodity cycles
- Return inconsistency across calendar years, from 54.11% in 2023 to 3.53% in 2026 YTD, highlights the theme's boom-bust character
Generated on 11-09-2026, 3:09 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 | ₹12.84 L | 32.7% | -29.9% | 137.8% |
| 3 Years | ₹36.00 L | ₹47.16 L | 18.3% | 9.9% | 24.7% |
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 | 32.7% | 14.4% | 14.1% | +18.3% |
| 3 Years | 18.3% | 11.1% | 16.8% | +7.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 32.1% | 17.6% | -11.3% | 100.0% | 0.75 | 5.31 | 82% | — | — |
| 3 Years | 28.0% | 28.5% | 22.4% | 32.7% | 9.62 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.04 | 0.78 | 87.5% | 72.3% | 10.2% | -2.9% |
| 3 Years | +16.22 | 1.05 | 111.5% | 92.0% | 24.0% | 7.8% |
| 5 Years | +12.10 | 0.97 | 103.3% | 82.7% | 18.2% | 6.0% |
| 7 Years | +8.29 | 0.97 | 103.3% | 82.7% | 12.7% | 4.3% |
| 10 Years | +5.61 | 0.97 | 103.3% | 82.7% | 8.7% | 3.0% |
| 12 Years | +4.58 | 0.97 | 103.3% | 82.7% | 7.2% | 2.5% |
| 15 Years | +3.59 | 0.97 | 103.3% | 82.7% | 5.7% | 2.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | State Bank Of India | 16.36% |
| 2 | NTPC Ltd. | 9.47% |
| 3 | Power Grid Corporation Of India Ltd. | 7.58% |
| 4 | Bharat Electronics Ltd. | 5.46% |
| 5 | Hindustan Aeronautics Ltd. | 5.24% |
| 6 | Oil & Natural Gas Corporation Ltd. | 4.96% |
| 7 | Indian Oil Corporation Ltd. | 3.75% |
| 8 | Bharat Petroleum Corporation Ltd. | 3.26% |
| 9 | Coal India Ltd. | 3.03% |
| 10 | Oil India Ltd. | 2.72% |