ICICI Prudential Multi-Asset Fund turns Rs 10 lakh into Rs 7.5 cr in 22 yrs

The investment strategy spreads its money throughout several asset classes and market capitalizations in an effort to produce returns over a longer period of time. It allocates at least 10% of its ass

ICICI Prudential Multi-Asset Fund, one of India’s largest and most successful multi-asset allocation funds, has achieved a remarkable milestone—completing 22 years of robust performance. With a closing Asset Under Management (AUM) of Rs 50,495.58 crores as of September 30, 2024, the fund now holds a dominant share of 48.29% in the multi-asset allocation category, solidifying its position as a preferred choice for investors seeking diversified, long-term growth. 

 

An initial lump sum investment of Rs 10 lakh made at the fund's inception would have grown to approximately Rs 7.26 crore by September 30, 2024, reflecting a Compounded Annual Growth Rate (CAGR) of 21.58%. In comparison, a similar investment in the fund’s benchmark—composed of Nifty 200 TRI (65%), Nifty Composite Debt Index (25%), Domestic Price of Gold (6%), Domestic Price of Silver (1%), and iCOMDEX Composite Index (3%)—would have amounted to around Rs 3.36 crore, yielding a CAGR of 17.39%.

 

 

For investors opting for the Systematic Investment Plan (SIP) route, a monthly SIP of Rs 10,000, which totals Rs 26.4 lakh over 22 years, would have grown to approximately Rs 2.9 crore by the end of September 2024, reflecting a CAGR of 18.37%. In comparison, the same SIP investment in the benchmark index would have yielded a CAGR of 14.68%. 

 

On the fund’s 22-year anniversary, Nimesh Shah, Managing Director & CEO of ICICI Prudential AMC, praised the fund’s strong track record of wealth creation. He said, "ICICI Prudential Multi-Asset Fund’s journey of wealth creation is a strong testament to the power of disciplined asset allocation across diverse asset classes. This approach has benefited our investors over the long term with rewarding investment outcomes.”

 

ICICI Prudential Multi-Asset Fund is an open-ended scheme that invests across equity, debt, and a range of other asset classes, including Exchange Traded Commodity Derivatives, Gold ETFs, Silver ETFs, and units of REITs and InvITs. The fund adopts a balanced approach, ensuring that at least 10% of the portfolio is allocated across three or more asset classes, which enhances diversification and provides steady returns in both bullish and bearish market cycles.

 

Speaking about the fund strategy, S Naren, ED & CIO, ICICI Prudential AMC said, “Over the past decade and beyond, the performance of various asset classes has demonstrated that the top performer often shifts from year to year. In this dynamic environment, spreading one's investments across different asset classes is an effective way to capitalize on the unique opportunities each offers. This diversified approach helps ensure that the portfolio can benefit from the potential gains of each asset class, regardless of market conditions. By adopting this strategy, investors can achieve a more favorable risk-adjusted return across market cycles. Moreover, diversifying a portfolio across multiple asset classes also plays a crucial role in managing volatility, helping to smooth out the fluctuations that can occur in individual markets.”