The return given by mutual fund schemes is one of the key factors that helps in evaluating the performance of a mutual fund. Although there are other factors also that helps investors determine the future prospects of a mutual fund scheme’s performance. These include reputation of fund house, portfolio mix, macro-economic factors, growth seen in the sectors that the fund has invested into, among others.
However, we dwell deeper into the performance given by a top-performing balanced mutual fund i.e., ICICI Prudential Multi Asset Growth Fund.
At the outset, we define what are balanced mutual funds.
What are balanced mutual funds?
A balanced fund combines equity stock component, a bond component and sometimes a money market component in a single portfolio, according to the definition of AMFI's knowledge centre.
These funds invest in a mix of equities and debt, giving the investor the best of both worlds.
Balanced funds are suitable for a medium-term horizon and are ideal for investors who are looking for a mixture of safety, income and modest capital appreciation.
Returns by ICICI Prudential Multi Asset Fund
ICICI Prudential Multi Asset Fund (Growth) gave a return of 17.36 percent in past one year, 19.97 percent in three years and 12.90 percent in past five years, according to the ‘SMC Mutual Fund Weekly Update’ as on August 8, 2022.
The other high performing fund schemes, as per the report, are ICICI Prudential Equity & Debt Fund - Growth that gave a return of 15.79 percent in past one year and HDFC Balanced Advantage Fund - Growth delivered a return of 13.20 percent.
Now coming back to ICICI Prudential Multi Asset Fund. It was launched in October 2002 and its NAV (net asset value) is ₹444, one month return was 6.03 percent, two month return of 2.13 percent and six month return of 3.14 percent.
In past 19 years and 9 months, its CAGR is 20.93 percent, according to the AMC’s website. In other words, if someone had invested ₹one lakh at the time of scheme’s launch, the money would have swelled to ₹42,05,520 by now.
Also, if someone had invested an SIP of ₹5,000 every month since inception, the invested corpus would have grown to ₹85,34,391.
The minimum purchase application amount is ₹5,000 and minimum additional investment is ₹1,000.
Its top holdings are NTPC, Gold commodity August 2022 future, ICICI Bank, Bharti Airtel, ONGC, GOI Floater 2033, ICICI Prudential Gold ETF, Infosys, HDFC Bank and silver.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.)