Investment Objective and Approach

The scheme seeks to generate income through investments in a range of debt and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

The fund follows a strategy of investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 years - 4 years. This medium-duration approach allows the fund to capitalize on interest rate movements while managing duration risk effectively.

The fund maintains a diversified portfolio across various debt instruments including:

- Government securities

- Corporate bonds

- Money market instruments

- Other fixed income securities

The fund has an allocation of 1.18% in Equity, 90.43% in Debt and 8.08% in Cash related instruments as of the latest data, indicating its primary focus on debt investments with minimal equity exposure.

Fund Managers

Manish Banthia and Akhil Kakkar are the current fund managers of ICICI Prudential Medium Term Bond Fund.

Manish Banthia - He holds B.Com, CA and MBA qualifications. He has been associated with ICICI Prudential Asset Management Company since October 2005, with experience in Fixed Income Investments from August 2007 to October 2009, and New Product Development from October 2005 to July 2007. Prior to this, he worked with Aditya Birla Nuvo Ltd. from May 2005 to October 2005, and Aditya Birla Management Corporation Ltd. from May 2004 to May 2005.

Akhil Kakkar - He holds B.Tech (IIT Roorkee) and PGDM (Finance) qualifications. Prior to joining ICICI Prudential Mutual Fund, he has worked with Kotak Mahindra Bank in Debt Capital Markets, SBI Capital Markets in Project Advisory & Structured Finance and Goldman Sachs Services Pvt Ltd as Analyst Developer.

About the Fund House (AMC)

ICICI Prudential Asset Management Company Ltd. is one of the largest asset management company (AMC) in the country. It is a joint venture between ICICI Bank in India and Prudential Plc, in UK. It was started in 1993.

The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial services in India and Prudential Plc, a leading pan-Asia & Africa focused group providing health, protection and savings solutions. Throughout these years of the joint venture, the company has forged a position of pre-eminence in the Indian Mutual Fund industry.

The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees at the inception of the joint venture in 1998, to a current strength of 3072 employees with a reach across over 350 locations reaching out to an investor base of 97 lakh investors (as on January 31st, 2024).

The AMC manages significant Assets under Management (AUM) in the mutual fund segment. The AMC also caters to Portfolio Management Services for investors, spread across the country, along with International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate.

Should I Invest in ICICI Prudential Medium Term Bond Fund?

Fund Performance Highlights:

- Returns Performance: Over the last 1, 3 and 5 years the fund has given a CAGR return of 10.01%, 8.16% and 8.12% respectively

- Since Inception Returns: The fund has given a CAGR return of 8.58% since inception

- AUM Size: The fund has ₹5684 Cr worth of assets under management (AUM) as on Mar 2025 and is more than category average

Key Investment Considerations:

Positives:

- This fund has delivered an average annual returns of 8.58% since inception which is more than its category average return of 6.44%

- This fund has one of the lowest expense ratio in the category (medium duration). Its expense ratio is 0.74% which is lower than the category average expense ratio of 1.04%

- The fund has generated average returns with exceptional consistency. You can consider this fund if the predictability of returns is what you are looking for

Risk Factors:

- The ICICI Prudential Medium Term Bond Fund is rated Moderately High risk

- The risk of incurring a loss in these funds over the said time frame is low, but they do not guarantee returns or safety of capital

- Interest rate sensitivity due to medium duration strategy

Suitability:

This fund is suitable for investors looking for:

- Regular income generation from debt investments

- Medium-term investment horizon (3-4 years)

- Moderate risk tolerance

- Predictable returns with reasonable consistency

FAQs

What is today's NAV of ICICI Prudential Medium Term Bond Fund?

The current NAV of ICICI Prudential Medium Term Bond Fund Direct Growth is ₹48.42 as on 16-Apr-2025. The NAV changes daily based on market conditions and the underlying portfolio value.

What is the AUM of ICICI Prudential Medium Term Bond Fund?

ICICI Prudential Medium Term Bond Fund has ₹5684 Cr worth of assets under management (AUM) as on Mar 2025, which is higher than the category average.

What is the expense ratio of ICICI Prudential Medium Term Bond Fund?

The fund has an expense ratio 0.7% for the direct plan, which is competitive and lower than the category average of 1.04%.

What are the returns of ICICI Prudential Medium Term Bond Fund since inception?

ICICI Prudential Medium Term Bond Fund has given a CAGR return of 8.58% since inception, outperforming the category average significantly.

What is the minimum SIP amount to invest in ICICI Prudential Medium Term Bond Fund?

The minimum investment required is ₹5,000 for the lump sum option and ₹1,000 for the SIP (Systematic Investment Plan) option.

How do I invest in ICICI Prudential Medium Term Bond Fund?

You can invest through Allvest's platform easily. Simply log into your Allvest account, search for the fund, select your investment amount, and complete the payment process through your preferred payment method.

How to start a SIP in ICICI Prudential Medium Term Bond Fund?

Through Allvest, you can start a SIP by selecting the fund, choosing the SIP option, setting your monthly investment amount (minimum ₹1,000), selecting your preferred SIP date, and enabling auto-debit from your bank account.

How do I automate an SIP in ICICI Prudential Medium Term Bond Fund?

Allvest offers automated SIP features where you can set up recurring investments. Once configured, your chosen amount will be automatically invested at regular intervals without manual intervention.

How can I withdraw/redeem my investment in ICICI Prudential Medium Term Bond Fund?

You can redeem your investment through the Allvest platform by logging into your account, navigating to your portfolio, selecting the fund, and placing a redemption request. The process is simple and can be completed online within minutes.