The ICICI Pru Overnight Fund - Direct Plan is a stable investment scheme designed for investors seeking low-risk, short-term financial solutions. Ideal for conservative investors and those looking to park their funds safely while earning reasonable returns, this fund invests primarily in overnight securities. It matters because it provides liquidity and capital preservation, making it a suitable choice for individuals and institutions alike.

Low-risk investment option
Focus on overnight securities
Ideal for conservative investors
Provides liquidity and capital preservation
Suitable for short-term financial goals

Investment Thesis

ICICI Pru Overnight Fund stands out due to its strong backing from the reputable ICICI Group, ensuring credibility and trust. The fund is well-positioned to capitalize on the growing digital services sector, offering a promising growth trajectory. Additionally, its attractive valuation compared to peers makes it an appealing choice for investors seeking stability and potential returns.

Strong promoter group: Backed by the reputable ICICI Group, enhancing trust and reliability.
Digital services growth: Positioned to benefit from the expanding digital financial landscape.
Attractive valuation: Competitive pricing relative to peers, offering potential for higher returns.
Stable returns: Focus on overnight investments ensures liquidity and lower risk.
Expert management: Managed by seasoned professionals with a proven track record.

Opportunity vs Risk

Opportunities

Stable returns in volatile markets
Potential for tax-efficient income
Strong brand reputation
Diversification in fixed income
Professional fund management

Risks ⚠️

Interest rate fluctuations
Market liquidity concerns
Credit risk in underlying assets
Regulatory changes impact
Inflation erodes real returns

Peer Perspective

ICICI Pru Overnight Fund trades at a slight premium compared to peers like HDFC Overnight Fund and SBI Overnight Fund. A sustained improvement in margin stability could trigger a favorable rerating.

📊 Stock Investment Checklist (100 Points)

ICICI Pru Overnight fund-Direct Plan-Unclaimed IDCW Stable Scheme • Updated: 2025-09-29 13:42:49

10

Business
High

The sector is stable but lacks significant growth potential.
10

Growth
High

Moderate revenue growth observed, but inconsistent profit margins.
8

Profitability
High

ROE and ROCE are average, cash flow is stable but not exceptional.
9

Valuation
High

Valuation metrics are in line with peers but not compelling.
7

Balance
High

Debt levels are manageable, but liquidity is a concern.
6

Governance
Good

Promoter holding is decent, but some concerns over disclosures.
5

Drivers
Good

Limited growth drivers identified, execution risks present.
1

Technicals
Low

Weak market sentiment and low liquidity.

Final Score & Verdict

Score 48 / 100 • Risky

The fund shows potential for stability but lacks strong growth drivers and faces execution risks.