ICICI Prudential Multi-Asset Fund on November 3, 2023 completed 21 years. The open ended scheme invests in equity, debt and exchange-traded commodity derivatives, units of gold ETFs, units of real estate investment trusts (Reits) and Infrastructure Investment Trusts (InvITs), and preference shares.
The fund’s investment strategy spreads its money across several asset classes and market capitalisation in order to produce returns over the long term. It allocates at least 10 per cent of its assets across three or more asset classes. The scheme has assets under management (AUM) of Rs 24,060.99 crore, or about 57 per cent of the total AUM in the multi-asset allocation category.
ICICI Prudential Mutual Fund said in a statement that a lump sum investment of Rs. 10 lakh at the time of inception in October 31, 2002, would be approximately worth Rs. 5.49 crore as of September 30, 2023, i.e., a compounded annualised growth rate (CAGR) of 21 per cent.
“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 approximately Rs. 2.57 crore, i.e., CAGR of 16 per cent,” it said.
“In terms of systematic investment plan (SIP) performance, a monthly investment of Rs 10,000 via 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, 2023, i.e., a CAGR of 17.5 per cent. A similar investment in the scheme’s benchmark would have yielded a CAGR of 13.7 per cent,” it added.
Nimesh Shah, managing director and CEO, ICICI Prudential Asset Management Company (AMC) said: “The wealth creation journey of ICICI Prudential Multi-Asset Fund is a testament to the fact that judicious asset allocation across asset classes works well for the investor over the long term. We are pleased that clients who remained invested had a pleasant investment experience.”
S Naren, executive director and chief investment officer, ICICI Prudential AMC 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 way 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.”