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Manish Banthia, fund manager of ICICI Prudential Income Growth Fund, is driven by quest for value with a contratrian bent, Morningstar India said in a note.
The manager focuses on the macroeconomic scenario, liquidity conditions, spreads, and other short-term influencing factors to define the asset allocation and maturity profile.
He is keenly attuned to market expectations and developments while constructing the portfolio. Duration plays and spread analysis are the mainstays of Banthia’s investment strategy in the underlined fund.
The fund has maintained a higher-duration strategy largely through government securities/state development loans. Based on the spread analysis, the manager oscillated between G-Sec, SDLs, and corporate debt papers.
However, Morningstar India cautions investors that the fund could expose them to higher volatility than peers although it remains a compelling offer if held for a longer period.
The managers have built a solid record and the fund has handily beaten its benchmark and peer group across time, the note stated.
The fund’s fees offer room for improvement, but the overall execution of the strategy has been good.
Morningstar India sees enough merit in the underlined fund to upgrade it to a Morningstar Analyst Rating of Bronze from Neutral.
(Disclaimer: The above report is part of Morningstar India’s research. The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.)
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