ICICI Prudential Flexicap Fund Direct Payout of Income Distribution cum Cap Wdrl INF109KC1R30

ICICI Prudential Flexicap Fund earns an Above Average Process Pillar rating.

The main driver of the rating is the parent firm's five-year risk-adjusted success ratio of 63%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.4 stars, also influences the rating. However, the process is limited by the parent firm's five-year retention rate of 60%, which raises concerns about long-term strategic consistency..

This strategy owns more growth stocks than its peers in the Flexi Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has exhibited a strong tendency to hold fewer stocks with high dividend or buyback yields compared with Morningstar Category peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. Such positions do not tend to provide much ballast for a portfolio. Compared with category peers, however, the strategy had more exposure to the Quality factor in the most recent month. Additionally, this strategy has tilted toward illiquid stocks during these years, evidenced by holding companies with relatively lower trading volumes than peers. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In recent months, the strategy also had less Liquidity factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in consumer cyclical and consumer defensive relative to the category average by 25.9 and 2.5 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and healthcare, underweight the average by 11.4 and 5.6 percentage points of assets, respectively. The portfolio is composed of 68 holdings and is quite concentrated. In particular, 52.0% of the fund’s assets are housed within the top 10 holdings, versus the category’s 40.4% average.