The ICICI Prudential Multi Asset Fund was launched on 31 Oct 2002. Since its inception, the fund has aimed to capitalize on opportunities across various asset classes to deliver consistent returns to its investors. In this article we will discuss scheme returns over last 10 years and why this could be an attractive investment option for many investors.
Performance Metrics
Annualized Returns
The fund has demonstrated the following annualized returns:
- 1 Year: 30.3%
- 3 Years: 19.66%
- 5 Years: 22.38%
- 10 Years: 15.05%
Note: Past performance does not guarantee future results.
Total Expense Ratio (TER)
The latest Total Expense Ratio for the ICICI Prudential Multi Asset Fund is 1.48%. This figure represents the annual cost to investors for managing and operating the fund.
Risk and Performance Indicators
- Standard Deviation: 8.32%
- This measure indicates the fund’s volatility relative to its average returns.
- Alpha: 8.13
- Alpha represents the fund’s excess return compared to its benchmark index.
- Beta: 0.99
- Beta measures the fund’s volatility in relation to the overall market.
- Sharpe Ratio: 1.54
- This ratio helps investors understand the return of an investment compared to its risk.
- Treynor’s Ratio: 0.13
- Treynor’s Ratio measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk.
Portfolio Composition
Top 10 Holdings
As of 30 Sept 2024, the top 10 holdings of the ICICI Prudential Multi Asset Fund are:
- HDFC Bank
- ICICI Bank
- Maruti Suzuki India
- NTPC
- RIL
- Bajaj Finserv
- SBI cards and payment
- Infosys
- Sun Pharma
- InterGlobe Aviation
Asset Allocation
The fund maintains a diversified portfolio across multiple asset classes, which may include:
- Equity
- Debt
- Gold
- Other alternative investments
The exact allocation percentages are dynamically adjusted based on market conditions and the fund manager’s outlook.
Why Invest in ICICI Prudential Multi Asset Fund?
- Diversification: By investing across multiple asset classes, the fund helps spread risk and potentially smooth out returns over time.
- Professional Management: Benefit from the expertise of experienced fund managers who actively manage the portfolio.
- Dynamic Asset Allocation: The fund’s ability to adjust its asset mix allows it to potentially capitalize on market opportunities and manage downside risk.
- Convenience: Gain exposure to multiple asset classes through a single investment, saving time and effort in managing individual investments.
- Potential for Stable Returns: The multi-asset approach aims to provide more stable returns compared to single-asset class funds, especially during market volatility.
- Tax Efficiency: The fund structure may offer tax advantages compared to managing multiple investments separately.
- Liquidity: As an open-ended fund, it offers the flexibility to buy or sell units on any business day.
- Track Record: Consider the fund’s historical performance and consistency in meeting its investment objectives.
- Risk Management: The diversified approach inherently includes risk management strategies to protect against significant downturns in any single asset class.
- Inflation Hedge: The inclusion of various asset classes, such as gold and equity, can potentially help in hedging against inflation over the long term.
Conclusion
The ICICI Prudential Multi Asset Fund offers investors a comprehensive investment solution that aims to balance growth potential with risk management. Its diversified approach and professional management make it an attractive option for investors seeking a one-stop solution for their investment needs. However, as with any investment, it’s crucial to consider your personal financial goals, risk tolerance, and investment horizon before making a decision.
Legal Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
The information provided in this document is for general informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. The Net Asset Value (NAV) of the units of the scheme may go up or down based on the factors and forces affecting the securities markets. The performance of the scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems in equity and debt markets.
Investors are advised to consult their financial advisors before making any investment decisions.