ICICI Prudential Multi Asset Fund has completed 20 years. The scheme has an AUM of Rs. 14,227.24 core, which accounts for nearly 68% of the total AUM in the multi-asset category. A lump sum investment of Rs 10 lakhs at the time of inception (October 31, 2002), as of October 31, 2022, would be approximately worth Rs. 4.6 crore i.e. a CAGR of 21.2%, ICICI Pru MF said in a statement. A similar investment in Nifty 50 would have yielded a CAGR of 17.4% approximately Rs. 2.5 crore.
In terms of SIP performance, a monthly investment of Rs 10,000 via SIP since the inception, which would amount to a total investment of Rs 24.1 lakh, would have grown to Rs 1.8 crore as of October 31, 2022 i.e. a CAGR of 17.4%.
“ICICI Prudential Multi Asset Fund is a testament to the thesis that prudent allocation across asset classes works well over time. We are happy that customers who came on board at varying points in this wealth creation journey could experience the positive investment experience,” said Nimesh Shah, MD & CEO of ICICI Prudential AMC, while speaking on the occasion of 20 years’ completion.
Features of ICICI Prudential Multi-Asset Fund
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 (Real Estate Investment Trusts) & InvITs (Infrastructure Investment Trusts) /Preference shares.
The scheme invests across market capitalizations and various asset classes with the aim to generate absolute returns over longer time frames. It invests a minimum of 10 per cent of its assets in three or more asset classes.
According to the AMC, the net equity (net equity exposure is calculated net of stocks futures and options) can range between 10-80 per cent. The scheme follows a counter-cyclical approach in investing and may take sector deviations against the benchmark. The scheme may take exposure to REITs, InvITs and Covered call options with an aim to enhance portfolio yield.
“The advantage of multi-asset investing is that equity, debt, gold, may peak and bottom-out at different points of time,” said S Naren, ED & CIO, ICICI Prudential AMC.
“When it comes to investing, no one can predict which asset class will outperform at any point in time. As can be seen from the performance of various asset classes over the past decade and more, every other year, the winning asset class keeps on changing. The only way to make the most of such a situation is by spreading one’s allocation across asset classes, such that on an aggregate basis the portfolio can tap into the potential benefits and gains that each asset class renders. Across market cycles, such an approach has aided in delivering a better risk-adjusted investment experience. Furthermore, multi-asset investing can aid in curbing portfolio volatility and over longer time horizons the importance of de-risking the portfolio cannot be overstated,” he added.
(Mutual fund investments are subject to market risks. There is no assurance or guarantee that a fund will reflect its past performance in future. Please consult your financial advisor before investing)