In an era where individual stock investments often steal the limelight in the search for substantial gains, mutual funds have silently been marking their territory as remarkable wealth creators in the long run. The ICICI Prudential Multi-Asset Fund, which has just completed 21 years, is one of them. Historical data showed that a lump sum investment of Rs 10 lakh in the multi-asset allocation fund at the time of inception on October 31, 2002, would have turned to Rs 5.49 crore as of September 30, 2023, indicating an annualised return of 21 per cent during the period.
Read More: ICICI Bank, Bank of India Hike Lending Rates; Check Latest MCLRs
According to Value Research, the scheme has an asset under management (AUM) of Rs 24,060.99 crore which accounts for nearly 57 per cent of the total AUM in the multi-asset allocation category.
Data shared by ICICI Prudential Mutual Fund showed that a similar investment in scheme benchmark—Nifty 200 TRI (65 per cent) + Nifty Composite Debt Index (25 per cent) + Domestic Price of Gold (6 per cent) + Domestic Price of Silver (1 per cent) + iCOMDEX Composite Index (3 per cent) – would have yielded around Rs. 2.57 crore at a CAGR of 16 per cent during the same period.
Read More: How To Open Mahila Samman Savings & Senior Citizen Savings Scheme Account Online?
In terms of SIP performance, a monthly investment of Rs 10,000 through a systematic investment plan (SIP) since the inception, which would amount to a total investment of Rs 25.2 lakh, would have grown to Rs 2.1 crore as of September 30 (17.50 per cent CAGR). A similar investment in the scheme’s benchmark would have yielded a CAGR of 13.7 per cent.
Commenting on the robust performance of the multi-asset fund, Nimesh Shah, MD and CEO of ICICI Prudential Mutual Fund said, “The performance is a testament to the fact that judicious asset allocation across asset classes works well for the investor over the long term.”
S Naren, ED and CIO, ICICI Prudential Mutual Fund said, “The performance of several asset classes over the previous decade and beyond shows that the top-performing asset class has changed every other year. Spreading one’s allocation across asset classes is one of the ways to profit in this scenario so that the portfolio as a whole may take advantage of the potential gains and benefits that each asset class offers. Such a strategy has helped deliver better risk-adjusted investment experience over market cycles. Additionally, diversifying a portfolio across different asset classes also aids in managing portfolio volatility.”
ICICI Prudential Multi-Asset Fund is an open-ended scheme investing in equity, debt and exchange-traded commodity derivatives/units of gold ETFs/units of REITs and InvITs/preference shares. The investment strategy spreads its money throughout several asset classes and market capitalisations in an effort to produce returns over a longer period of time. It allocates at least 10 per cent of its assets across three or more asset classes. To enhance portfolio yield the plan may invest in covered call options.
