ICICI Prudential Smallcap Fund Direct Plan Payout of Income Distribution cum Cap Wdrl INF109K013M5

ICICI Prudential Smallcap earns an Above Average Process Pillar rating.

The leading factor in the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.5 stars. The parent firm's five-year risk-adjusted success ratio of 67% also contributes to the process. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their impressive 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 61%, which raises concerns about long-term strategic consistency..

This strategy hews closely to the market cap and investment style of its Small-Cap category peers. Analyzing additional factors, this strategy has consistently had low exposure to momentum stocks in the past few years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In the latest month, the strategy was also less exposed to the Momentum factor compared with Morningstar Category peers. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Compared with category peers, however, the strategy had more exposure to the Quality factor in the most recent month. In addition, this strategy has an underweight bias to the volatility factor, meaning investing in stocks that have a lower standard deviation of returns. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. In recent months, the strategy also had less Volatility 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 basic materials and industrials relative to the category average by 16.2 and 3.6 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and technology, underweight the average by 9.0 and 4.9 percentage points of assets, respectively. The strategy owns 118 securities and is quite concentrated. More concretely, 25.0% of the portfolio's assets are housed within the top 10 holdings, as opposed to the category’s 17.9% average.