ICICI Pru Floating Interest Fund (DD-IDCW) is a dynamic debt fund designed for investors seeking to benefit from fluctuating interest rates. This fund is ideal for conservative investors looking for stable returns while managing interest rate risk. It invests primarily in floating rate instruments, providing a hedge against rising rates. With a professional management team and a focus on capital preservation, this fund stands out for its liquidity and potential for regular income. It's a smart choice for those aiming to diversify their portfolio with lower volatility.

Dynamic debt fund for fluctuating interest rates
Ideal for conservative investors
Focus on capital preservation
Invests in floating rate instruments
Professional management team
Offers liquidity and potential regular income

Investment Thesis

ICICI Pru Floating Interest 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, enhancing its growth potential. Additionally, its attractive valuation compared to peers makes it a compelling investment opportunity for retail investors.

Strong promoter group: Backed by the established ICICI Group, ensuring reliability.
Digital services growth: Positioned to benefit from the expanding digital landscape.
Attractive valuation: Offers competitive pricing compared to peer funds.
Robust performance track record: Consistently delivers value to investors.
Focus on floating interest rates: Provides a hedge against rising interest rates.

Opportunity vs Risk

Opportunities

Rising interest rates boost returns
Diversified investment portfolio
Strong brand reputation
Potential for capital appreciation
Regular income through dividends

Risks ⚠️

Market volatility impacts returns
Interest rate fluctuations
Economic downturn risks
Regulatory changes affecting funds
Credit risk from underlying assets

Peer Perspective

ICICI Pru Floating Interest Fund trades at a slight premium compared to peers like HDFC and SBI funds. A stable margin and consistent growth in interest income could trigger a rerating in the near term.

📊 Stock Investment Checklist (100 Points)

ICICI Pru Floating Interest Fund(DD-IDCW) • Updated: 2025-10-01 03:14:44

10

Business
High

The sector is stable but lacks significant growth drivers.
10

Growth
High

Revenue growth has been inconsistent, with fluctuations in profit margins.
10

Profitability
High

ROE and ROCE are decent, but cash flow has been volatile.
10

Valuation
High

Valuation metrics are in line with peers but show limited upside.
8

Balance
High

Debt levels are manageable, but liquidity could be improved.
7

Governance
High

Promoter holding is strong, but there are concerns about transparency.
5

Drivers
Good

Limited growth catalysts identified, with execution risks present.
3

Technicals
Low

Market sentiment is neutral with low trading volume.

Final Score & Verdict

Score 70 / 100 • Decent

The fund shows decent potential but faces challenges in growth and profitability consistency.