ICICI Prudential Multi-Asset Fund

ICICI Prudential Multi-Asset 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 Multi-Asset Fund.

About ICICI Prudential Multi-Asset Fund 

1. Investment objective

To generate capital appreciation for investors by investing predominantly in equity and equity-related instruments and income by investing across other asset classes. 

2. Investment process  

The Scheme proposes to invest across asset classes, in line with the asset allocation mentioned in the SID, with the aim of generating capital appreciation and income for investors.

With this aim, the Investment Manager allocates the assets of the Scheme predominantly in Equity and equity-related instruments, and the remaining portion of the corpus in Debt, units of Gold ETFs/ETCDs/units of REITs & InvITs/preference shares. 

3. Portfolio composition 

The equity exposure is majorly in large-cap stocks at 54% and sectoral major exposure is to financial services and software. The top 5 sectors hold nearly 40% of the portfolio.

The major exposure in the Debt sector is to Government backed securities like Government Bonds and T-Bills.

ICICI-Pru-Multi-Asset-Fund-Composition
Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. 
Source: ICICI Pru AMC 

 Top 5 holdings

Name Sector Weightage % 
NTPC Ltd.  Public Sector Undertaking 8.29 
Gold – 1kg – 1000gms Commodity 7.98 
ICICI Bank Ltd. Financial Services 7.38 
Bharti Airtel Ltd. Telecommunications 5.82 
Oil and Natural Gas Corporation Ltd. Energy 4.89 
Note: Data as of 30th Sep 2022. 
Source: ICICI Pru AMC 

Performance over 20 years

If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 4.69 lakhs. This fund has outperformed the benchmark in all time horizons. 

ICICI-pru-multi-asset-performance-over-16-years
Note: Performance of the fund since launch; Inception Date – Oct 31, 2002. 
Source: icicipruamc.com 

The fund has given consistent returns and has outperformed the benchmark over the period of 20 years by generating a CAGR (Compounded Annual Growth Rate) of 21.40% 

Fund Manager 

Mr. Sankaran Naren, Mr. Ihab Dalwai, Mr. Anuj Tagra, Mr. Gaurav Chikane, and Ms. Sri Sharma are the fund managers of the Scheme.

  • Mr. Sankaran Naren has been managing this scheme for 10 years and 8 months i.e., since February 2012.
  • Mr. Ihab Dalwai has been managing this scheme for 5 years and 4 months i.e., since June 2017.
  • Mr. Anuj Tagra has been managing this Scheme for 4 years and 5 months i.e., since May 2018.
  • Mr. Gaurav Chikane (for ETCDs) Managing this fund for 1 year and 2 months since August 2021.
  • Ms. Sri Sharma has been managing the scheme for around 1 year and 2 months i.e., since August 2021

Who should invest in ICICI Prudential Multi-Asset Fund? 

Investors looking for 

  • Long-term wealth creation solution. 
  • Looking for portfolio exposure in multiple asset classes within the same fund. 

Why invest in ICICI Prudential Multi-Asset Fund? 

  • The scheme is suitable for investors who are looking for diversified exposure across asset classes 
  • The portfolio works in a three-fold manner providing the agility of equity stock, regular income through debt instruments, and gold acts as a good hedge against inflation. 

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 Multi-Asset Fund has a multi-asset allocation strategy that helps in portfolio diversification for an investor by providing the wealth creation potential through equity, regular income through debt and gold acts as a hedge against inflation and market volatility.

Disclaimer:

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

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