ICICI Prudential Quant Fund

ICICI Prudential Quant Fund has delivered a 3Y SIP XIRR of 16.6%, marginally ahead of the category average of 16.3%, though its 5Y XIRR of 12.25% trails the category average of 17.49% and its 1Y XIRR of 7.86% lags the category's 10.71%. Against the NIFTY 50, the fund shows consistent outperformance with positive alpha across all periods, including 5.55% alpha over 3Y and 4.02% over 5Y. The fund's 3Y CAGR of 10.56% versus the benchmark's 4.78% demonstrates meaningful lump-sum outperformance as well.

The fund exhibits defensive characteristics with a beta of 0.87 over 3Y and downside capture of 82.11% versus upside capture of 90.26%, indicating it falls less than the market in downturns. It has experienced 3 drawdown events exceeding 10%, with a lengthy 245-day maximum drawdown duration and 343-day recovery period, signaling that patience is required after sharp corrections. Calmar ratios above 0.84 across 1Y, 3Y, and 5Y windows reflect reasonable risk-adjusted returns given the drawdown profile.

The portfolio holds 51 stocks with a well-diversified top 10, where the largest position, HDFC Bank, is only 4.59% of NAV, limiting single-stock risk. Banks dominate at 14.5% of the portfolio, followed by Pharmaceuticals at 9.4% and IT at 7.1%, giving the fund a financials-heavy tilt balanced by healthcare and technology exposure. Holdings like Bajaj Finance, Dr. Reddy's, and Bharat Electronics suggest the quant model rotates across sectors rather than concentrating in a single theme.

The fund's 3Y XIRR of 16.6% slightly beats the category average of 16.3%, but its 5Y XIRR of 12.25% falls well short of the category's 17.49%, indicating recent performance is stronger than its longer-term record. Calendar year returns show volatility typical of the sectoral/thematic category, ranging from 44.67% in 2021 to -4.35% in 2026. The consistent positive alpha versus NIFTY 50 across 1Y through 15Y windows points to a durable edge even where category-relative returns lag.

This fund suits investors with a high risk tolerance and a horizon of at least 5 years, given the sectoral/thematic classification and the 343-day recovery time from its maximum drawdown. It works well as a satellite allocation alongside core diversified funds rather than a standalone holding, since quant-driven sector rotation can produce uneven short-term results. Investors should be comfortable with calendar-year swings such as the -4.35% return in 2026 and the 0.75% return in 2022.

• Consistent positive alpha versus NIFTY 50 across all measured periods, including 5.55% over 3Y and 4.02% over 5Y
• Favorable asymmetry with downside capture of 82.11% versus upside capture of 90.26% over 3Y, cushioning market falls
• Diversified 51-stock portfolio with the top holding at just 4.59% of NAV, limiting concentration risk

• 5Y SIP XIRR of 12.25% significantly trails the category average of 17.49%, showing weaker long-term category-relative performance
• High expense ratio of 1.81% and a lengthy 343-day recovery from maximum drawdown with 3 drawdown events exceeding 10%