The ICICI Pru Nifty SDL Sep 2027 Index Fund (A-IDCW) is a mutual fund that aims to track the performance of the Nifty SDL Sep 2027 Index, making it ideal for investors seeking exposure to state development loans. This fund is suitable for conservative investors looking for stable returns with lower risk compared to equities. It matters as it provides a diversified investment option with a focus on government-backed securities, ensuring safety and reliability in uncertain market conditions.

Tracks Nifty SDL Sep 2027 Index
Ideal for conservative investors
Offers exposure to government-backed securities
Lower risk compared to equities
Provides stable returns over the investment horizon

Investment Thesis

ICICI Pru Nifty SDL Sep 2027 Index Fund offers a compelling investment opportunity backed by a strong promoter group. With the growing shift towards digital services and attractive valuations compared to peers, this fund is positioned to deliver robust returns in the evolving market landscape.

Strong backing from ICICI Group, ensuring credibility and trust.
Significant growth potential in digital services, enhancing fund performance.
Attractive valuation compared to peer funds, presenting a buying opportunity.
Focus on SDLs provides stability and predictable returns.
Diversified exposure to Nifty SDLs, reducing risk while aiming for growth.

Opportunity vs Risk

Opportunities

Diversified exposure to SDLs
Potential for steady returns
Long-term investment horizon
Tax benefits on long-term gains

Risks ⚠️

Interest rate fluctuations
Market volatility impact
Liquidity concerns in SDLs
Credit risk of state governments

Peer Perspective

ICICI Pru Nifty SDL Sep 2027 Index Fund trades at a slight premium compared to peers like HDFC Nifty SDL Fund and SBI Nifty SDL Fund; a rerating could occur with improved margin stability and consistent growth.

📊 Stock Investment Checklist (100 Points)

ICICI Pru Nifty SDL Sep 2027 Index Fund(A-IDCW) • Updated: 2025-10-01 06:17:26

10

Business
High

The fund is focused on SDLs, which are government-backed securities, indicating a stable sector.
10

Growth
High

Consistent revenue growth is expected due to government borrowing needs.
10

Profitability
High

ROE and OCF are stable, but net profit margins are affected by interest rate fluctuations.
8

Valuation
High

Valuation metrics are reasonable compared to similar funds.
7

Balance
High

Strong liquidity position, but reliance on government bonds limits diversification.
6

Governance
Good

Promoter holding is stable, but transparency in disclosures can improve.
5

Drivers
Good

Growth is driven by government policies, but execution risks remain.
5

Technicals
Good

Market sentiment is neutral with moderate liquidity.

Final Score & Verdict

Score 68 / 100 • Decent

The fund presents a decent investment opportunity with stable returns, but investors should be cautious of interest rate risks and market volatility.