Sunday, September 25, 2022
HomeMutual FundICICI Prudential Equity & Debt Fund Review

ICICI Prudential Equity & Debt Fund Review


While preparing this month’s equity mutual fund screener, something caught our eye. ICICI Prudential Equity & Debt Fund gained 19.8% over the last year (trailing 1Y return) compared to only a 6.2% gain by Nifty 100 TRI (as of 3rd June 2022). So we dig deeper and find out how consistently the Fund has performed wrt Nifty 100 TRI and CRISIL 65:35 Aggressive Hybrid Index.

Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations can be found here: Handpicked List of Mutual Funds (PlumbLine).

The last 1Y trailing performance is shown below.

Last one-year performance of ICICI Equity and Debt Fund compared with Nifty 100 TRI and CRISIL 65-35 Aggressive Hybrid Index.

Readers must not make the mistake of getting carried away by this recent performance and must dig deeper.

The asset allocation history of the ICICI Equity and Debt Fund is shown below. The equity: debt ratio has been fairly stable over the years.

Asset allocation history of ICICI Equity and Debt Fund
Asset allocation history of ICICI Equity and Debt Fund

The market cap allocation history is shown below. The “others” represents the fixed income (bonds/cash) component. The fund’s large cap orientation is clear from the graph.

Market cap allocation history of ICICI Equity and Debt Fund
Market cap allocation history of ICICI Equity and Debt Fund

We will use three metrics to analyze performance consistency versus benchmarks. Analysis such as this can be found for 350+ equity funds in our monthly mutual fund screener.

1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 3Y,4Y, and 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the Fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.

Three years

Benchmark Crisil6535 Nifty 100 TRI
No of rolling return entries Index (3 Years) 1578 1578
No of rolling return entries Fund (3 years) 1578 1578
No of times the Fund has outperformed the index (3 years) 1166 1060
rolling return outperformance Consistency Score (3 years) 74% 67%

Four years

Benchmark Crisil6535 Nifty 100 TRI
No of rolling return entries Index (4 Years) 1333 1333
No of rolling return entries Fund (4 years) 1333 1333
No of times the Fund has outperformed the index (4 years) 1061 937
rolling return outperformance Consistency Score (4 years) 80% 70%

Five years

Benchmark Crisil6535 Nifty 100 TRI
No of rolling return entries Index (5 Years) 1085 1085
No of rolling return entries Fund (5 years) 1085 1085
No of times the Fund has outperformed the index (5 years) 889 811
rolling return outperformance Consistency Score (5 years) 82% 75%

That is reasonably consistent outperformance of both indices.

2 Upside performance consistency over every possible 3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward. It is computed from rolling upside capture data (see link below).

Benchmark Crisil6535 Nifty 100 TRI
upside performance consistency (3 years) 69% 44%
upside performance consistency (4 years) 70% 38%
upside performance consistency (5 years) 72% 41%

The Fund typically does better than the hybrid index when the index is doing well. The opposite is true for Nifty 100 TRI.

3 Downside performance consistency over every possible 3Y,4Y, 5Y. Higher, the better. A score of 60% means, 6 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.

Benchmark Crisil6535 Nifty 100 TRI
downside protection consistency (3 years) 73% 96%
downside protection consistency (4 years) 68% 100%
downside protection consistency (5 years) 61% 96%

The Fund typically falls lower than both indices when they fall. The performance is expectedly better wrt Nifty 100 because the hybrid index has bonds which offer downside protection.

in summary, ICICI Prudential Equity & Debt Fund has performed consistently and can be considered for long-term goals. However, they must keep in mind that the recent outperformance is unlikely to last and should not be the basis for choosing this Fund.

Do share if you found this useful

Enjoy special discounts on our 10th anniversary!  


Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.


Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 1000 investors and advisors use this!


Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 2800 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.


Our new course!  Increase your income by getting people to pay for your skills! More than 675 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   


My new book for kids: “Chinchu gets a superpower!” is now available!

Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.

Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!

Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!

Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun.

Buy the book: Chinchu gets a superpower for your child!


How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!



Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!


We publish mutual fund screeners and momentum, low volatility stock screeners .every month.


About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)


Connect with us on social media


Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.


Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.


Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)


Free android apps




RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments