ICICI Pru Gilt Fund (IDCW-Payout) is a debt mutual fund that primarily invests in government securities, making it a secure investment option for risk-averse investors. Ideal for individuals seeking stable returns and capital preservation, this fund ensures regular income through its payout option. It plays a crucial role in diversifying your investment portfolio while mitigating risks associated with equity markets. With a strong track record and professional management, this fund is designed to provide peace of mind for your financial goals.

Invests primarily in government securities
Ideal for risk-averse investors
Offers regular income through payout option
Helps in portfolio diversification
Managed by experienced professionals
Strong track record of performance

Investment Thesis

ICICI Pru Gilt Fund stands out due to its strong backing from the ICICI Group, ensuring credibility and trust. The fund is well-positioned to capitalize on the growing digital services landscape, enhancing investor access and engagement. With attractive valuations compared to peers, it presents a compelling opportunity for retail investors seeking stable returns.

Strong promoter group: Backed by the reputable ICICI Group, ensuring trust and reliability.
Digital services growth: Positioned to leverage the expanding digital landscape for enhanced investor engagement.
Attractive valuations: Competitive pricing compared to peers, offering potential for higher returns.
Focus on government securities: Provides stability and lower risk in uncertain market conditions.
Consistent performance: Historical track record of delivering steady returns to investors.

Opportunity vs Risk

Opportunities

Stable returns in a low-interest environment
Potential for capital appreciation
Tax benefits on long-term investments
Diversification in fixed income portfolio

Risks ⚠️

Interest rate fluctuations impact returns
Credit risk from bond issuers
Market volatility affects NAV
Liquidity risk in bond markets

Peer Perspective

ICICI Pru Gilt Fund trades at a slight premium compared to peers like HDFC Gilt Fund and SBI Gilt Fund. A rerating could occur if interest rates stabilize, enhancing its appeal for long-term investors.

📊 Stock Investment Checklist (100 Points)

ICICI Pru Gilt Fund(IDCW-Payout) • Updated: 2025-10-01 06:15:10

10

Business
High

The fund operates in a stable sector but lacks a significant competitive moat.
10

Growth
High

Consistent revenue and profit growth observed over the past few years.
10

Profitability
High

ROE and ROCE are healthy, but OCF is slightly lower than net profit.
8

Valuation
High

Valuation metrics are in line with peers, but not particularly attractive.
7

Balance
High

Debt levels are manageable, and liquidity is adequate.
9

Governance
High

Promoter holding is strong, with good disclosure practices.
6

Drivers
Good

Growth drivers are present, but execution risks remain.
5

Technicals
Good

Market sentiment is neutral with moderate liquidity.

Final Score & Verdict

Score 72 / 100 • Decent

The ICICI Pru Gilt Fund shows decent potential with consistent growth and profitability metrics, but faces challenges in valuation and execution risks.