ICICI Prudential ELSS Tax Saver Fund Growth INF109K01464

ICICI Prudential ELSS Tax Saver earns an Above Average Process Pillar rating.

The most important driver of the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.4 stars. The parent firm's five-year risk-adjusted success ratio of 63% also influences the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. 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 does not differentiate itself from its ELSS (Tax Savings) category peers in terms of size and style exposure. Examining additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy has had lower exposure to momentum stocks over peers in recent years. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. Similarly, in recent months, the strategy also had less exposure to the Momentum factor than peers. In addition, this strategy has constantly held more illiquid stocks, evidenced by holdings' low trading volume, resulting in higher liquidity risk exposure 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. Nevertheless, the fund's Liquidity exposure was in line with peers in the latest month. 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 healthcare and consumer cyclical relative to the category average by 3.5 and 2.6 percentage points, respectively. The sectors with low exposure compared with category peers are technology and basic materials, underweight the average by 5.0 and 3.9 percentage points of assets, respectively. The portfolio is positioned across 81 holdings and is quite concentrated. In particular, 52.6% of the fund’s assets are housed within the top 10 holdings, as opposed to the category average of 39.6%.