114239  |  INF109K01GU4  |  4 star  |  Bronze


$ 18.21

1-Day Total Return

INR | NAV as of 15/12/2017 10:30:00 | 1-Day Return as of 15 Dec 2017

TTM Yield




Total Assets

83.6 bil



Fee Level






Min. Inv.


30-Day SEC Yield



Corporate Credit

Credit Quality/Interest Rate Sensitivity

Morningstar's Take | 28/02/2017
by Himanshu Srivastava

Portfolio manager Rahul Bhuskute took over ICICI Prudential Regular Savings in October 2013 after it had undergone a series of changes at the helm. From its inception in December 2010 until August 2012, the fund was led by Chaitanya Pande. Avnish Jain took over in September 2012 after Pande exited the company. Jain managed this fund for one year and was replaced by Bhuskute.

The fund's investment strategy is rooted in credit calls, with little room for duration plays. Bhuskute therefore goes down the credit ladder in his quest for high-yielding securities. The portfolio is dominated by sub-AAA rated securities, which as of January 2017 accounted for nearly 84% of the portfolio. With a focus on credit calls, company-specific research is integral to the investment approach. Bhuskute is mindful of the risks involved in such an approach and follows a rigourous selection process. He invests only if a security passes muster on all his selection parameters. In our opinion, the process jells well with Bhuskute's prowess in credit calls.

The fund endured a rough patch when holding Jindal Steel & Power went through a series of downgrades before eventually defaulting on its interest payment last year. In September 2015, the security (rated Crisil A+) accounted for 3.80% of the portfolio. The manager has consistently reduced exposure to the holding, and as of January 2017, it accounted for 1.69% of the portfolio. Bhuskute maintains that it's more prudent to hold the security until maturity rather than offload it at a loss. Having said that, this hasn't altered our conviction in the fund and its manager. It's worth noting that such a risk is inherent to the strategy plied here, which entails going down the credit ladder.

We draw confidence from Bhuskute and his investment approach. Notwithstanding temporary blips, which go along with credit-oriented strategies, we believe the manager and his process have the wherewithal to outperform category peers over the long term. Hence, we are retaining its Morningstar Analyst Rating of Bronze.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

With a focus on credit calls, sub-AAA rated paper dominates the portfolio.


Rahul Bhuskute has the credentials to run a strategy rooted in credit calls.


ICICI Prudential AMC’s stewardship is in line with the industry norm.


A research-based approach that focuses on qualitative and quantitative aspects.


The fund has yet to deliver on its potential.


The fund's expense ratio is marginally higher than the norm.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.

For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

For Registered users only indicates the feature is available for Registered users only.
Mutual Fund Tools