ICICI Prudential Quality Fund
Direct · GrowthAI Summary
ICICI Prudential Quality Fund delivered a 1Y SIP XIRR of 3.75%, well below the sectoral/thematic category average of 10.7%, indicating underperformance versus SIP peers. However, on a lump-sum basis it has meaningfully outperformed the NIFTY 50 across most windows, with a 1Y Fund CAGR of 1.84% versus the benchmark's -9.19%, generating 1Y alpha of 8.43%. Alpha narrows over longer horizons (0.97% over 5Y) and turns negative beyond 10Y (-0.12%), suggesting the benchmark outperformance is concentrated in recent periods.
The fund exhibits low volatility characteristics with a beta of 0.82-0.83 against the NIFTY 50 and a downside capture of 78.57% versus an upside capture of 91.37%, meaning it loses less in declines but also participates less fully in rallies. Its maximum drawdown of just -0.13% with a 97-day drawdown duration and 121-day recovery reflects strong downside resilience. The 1Y Calmar ratio of 0.31 indicates modest risk-adjusted returns relative to the drawdown experienced.
The portfolio holds 66 stocks with a diversified top-10 accounting for roughly 34.5% of NAV, led by ICICI Bank at 7.71% and Divi's Laboratories at 4.24%. Sector allocation is spread across Pharmaceuticals & Biotechnology (13.6%), Banks (12.5%), IT-Software (8.8%), Aerospace & Defense (7.4%), and Automobiles (6.6%), with no single sector dominating. This balanced, quality-oriented mix of large-cap financials, pharma, and defensives supports the fund's low-beta profile.
Against category peers, the fund lags on SIP returns, with its 1Y XIRR of 3.75% trailing the category average of 10.7% by roughly 7 percentage points. Its strength lies in capital preservation rather than category-typical aggressive returns, as evidenced by consistent benchmark outperformance on a lump-sum basis across 1Y to 7Y windows. Investors should recognize that thematic category averages are often inflated by concentrated sector bets this fund deliberately avoids.
This fund suits conservative investors seeking equity exposure with lower volatility and drawdown protection, rather than those chasing high thematic returns. A time horizon of at least 5 years is appropriate given the modest long-term CAGR figures, and investors should tolerate periods of category underperformance in exchange for smoother ride quality. It can serve as a stabilizing satellite holding within a broader diversified equity portfolio.
- Strong downside protection with a downside capture of 78.57% versus upside capture of 91.37% and a minimal maximum drawdown of -0.13%
- Consistent alpha over the NIFTY 50 across 1Y to 7Y windows, including 8.43% alpha in the 1Y period
- Well-diversified 66-stock portfolio with balanced sector exposure and no single sector above 13.6%
- 1Y SIP XIRR of 3.75% significantly trails the category average of 10.7%, indicating weak recent SIP performance versus peers
- Alpha diminishes over longer horizons and turns negative beyond 10Y (-0.12% at 10Y, -0.47% at 15Y), raising questions about long-term benchmark outperformance
Generated on 20-10-2026, 3:11 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 | ₹12.16 L | 3.2% | -15.0% | 14.6% |
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 | 3.2% | 14.3% | 10.7% | -11.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 4.0% | 3.4% | -2.5% | 10.4% | -0.83 | -0.67 | 95% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.43 | 0.83 | 91.4% | 78.6% | 1.8% | -9.2% |
| 3 Years | +2.40 | 0.82 | 88.3% | 77.0% | 1.5% | -2.5% |
| 5 Years | +0.97 | 0.82 | 88.3% | 77.0% | 0.9% | -1.5% |
| 7 Years | +0.35 | 0.82 | 88.3% | 77.0% | 0.7% | -1.1% |
| 10 Years | -0.12 | 0.82 | 88.3% | 77.0% | 0.5% | -0.8% |
| 12 Years | -0.29 | 0.82 | 88.3% | 77.0% | 0.4% | -0.6% |
| 15 Years | -0.47 | 0.82 | 88.3% | 77.0% | 0.3% | -0.5% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 7.71% |
| 2 | Divi's Laboratories Ltd. | 4.24% |
| 3 | Bharat Electronics Ltd. | 4.16% |
| 4 | Mahindra & Mahindra Ltd. | 3.53% |
| 5 | Sun Pharmaceutical Industries Ltd. | 2.93% |
| 6 | Astrazeneca Pharma India Ltd. | 2.63% |
| 7 | Hindustan Unilever Ltd. | 2.59% |
| 8 | HDFC Bank Ltd. | 2.50% |
| 9 | Eicher Motors Ltd. | 2.13% |
| 10 | TD Power Systems Ltd. | 2.12% |