ICICI-prudential-balanced-advantage-fund

ICICI Prudential Balanced Advantage Fund. Who should invest?

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.  

Let us talk about the flagship product – ICICI Prudential Balanced Advantage Fund. 

About ICICI Prudential Balanced Advantage Fund 

1. Investment objective

To provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments. 

2. Investment process   

The scheme uses an in-house asset allocation model to maintain an effective equity investment level to be above 65%. However, the actual equity level may go below 65% after considering the derivative exposure. 

3. Portfolio Composition 

The equity exposure is majorly in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 40% of the portfolio. 

ICICI-Pru-Balanced-Fund-porfolio-composition
Note: Data as of 30th Sep 2022. 
Source: ICICI Pru AMC 

Top 5 holdings

Name Sector Weightage % 
Reliance Industries Conglomerate 5.96 
ICICI Bank Ltd Financial Services 5.00 
Infosys Ltd. Information Technology 4.28 
HDFC Bank Ltd Financial Services 3.72 
Bharti Airtel Ltd. Telecommunications 3.19 
Note: Data as of 30th Sep 2022. 
Source: ICICI Pru AMC

Performance over 16 years

If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 52,450.

ICICI Prudential Balanced Advantage Fund performance over 16 years
Note: Performance of the fund since launch; Inception. Date – Dec 29, 2006. The investment horizon is from 30th Dec 2006 to 10th Nov 2022
Source: icicipruamc.com 

The ICICI Prudential Balanced Advantage Fund has given consistent returns and has outperformed the benchmark over the period of 16 years generating a CAGR (Compounded Annual Growth Rate) of 11.03%.

Fund manager 

The fund is ably managed by  

  • Ihab Dalwai – is a Chartered Accountant and has been associated with ICICI Prudential since 2011. 
  • Rajat Chandak – has completed his BCom (H) and is an MBA. has been associated with ICICI Prudential since 2008. 
  • Sankaran Naren – is a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata. He has been with ICICI Prudential since 2012. 

Who should invest in ICICI Prudential Balanced Advantage Fund? 

Investors looking for 

  • Long-term wealth creation solution. 
  • Looking for a dynamically managed portfolio. 

Why invest in ICICI Prudential’s balanced advantage fund? 

  • This equity fund aims for growth by investing in equity and derivatives. 
  • Get a smartly allocated portfolio according to market conditions. 

Horizon 

  • One should look at investing for a minimum of 5 years or more 
  • Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. 
Conclusion 

The ICICI Prudential Balanced Advantage Fund has a smart asset allocation strategy that helps in portfolio diversification for an investor.

The Scheme is suitable for investors who are seeking to benefit from market volatility while maintaining fair equity allocation levels based on market valuations. 

Disclaimer:

This is not recommendation advice. All information in this blog is for educational purposes only. 

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