NewDelhi: All investors want to see their investment grow, exponentially, but very few actually do. One such fund that has achieved this rare feat is ICICI Prudential MultiAsset Fund, one of India’s leading fund. In more than 22 years, this fund has taken an initial investment of ₹10 lakh to a mind blowing ₹7.26 crore, delivering superior returns to its benchmark index and other asset classes.
Long Term Investment in Multi Asset Funds
It goes without saying that investment experts always say that long term investments in mutual funds can be so much better than anything else with regards to returns. For example, ICICI Prudential Multi-Asset Fund has delivered annualised returns of 21.58%, versus a 17.39% generation by its benchmark Nifty 200 TRI index over the same period. But according to leading financial research platform Arthlab, this fund’s novel approach has not only continued to keep investors faith intact, but has also helped the fund amass a whopping Asset Under Management (AUM) of ₹59,495 crore, commanding close to 48% of the multi asset allocation market in India.
SIP yields are strong in monthly instalments
ICICI Prudential Multi Asset Fund has not only performed fabulously for one time investments, but has also been a wonderful return generator for those who have SIP’ed. Had you invested monthly ₹10,000 in this fund for the past 22 years, your current investment of just ₹26,400 lakh would turn into ₹29,000 lakh, clocking in a compound annual growth rate (CAGR) of 18.37%. The fund’s benchmark SIP investment would have generated an annual eye rate of 14.68% by comparison.
‘If you look at their sectoral allocation, it has been very disciplined, which is what has led to the success,’ explained the managing director and CEO of ICICI Prudential AMC, Nimesh Shah. It has been a very successful multi asset strategy generating sustained returns and creating wealth in the long term. Chief Investment Officer at ICICI Prudential, S. Naren said that diversification across equity, debt and commodities has been a winning combination, as different stocks and sectors outperform in different years.
The ICICI Prudential Multi Asset Fund invests in equity, debt, and commodities based instruments (including exchange traded commodity derivatives, gold and silver ETFs, REITs and InvITs). It has achieved resilience and performance by the use of this diversified approach through the fluctuating market conditions.
These are great results and the ICICI Prudential Multi Asset fund proves the possibility of long term mutual fund investment strategies. If you can hold your patience and your commitment, this fund would make an excellent vehicle to a substantial wealth, as it is so true to stay invested over the long run.
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