ICICI Prudential Fund: Invest in this fund for excellent earnings, will get bumper returns in 3 years

You can get returns of up to 18% by investing in ICICI Prudential Balanced Advantage Fund. Because this fund is giving better returns continuously for 16 years.

If you are planning to invest, then you can get up to 18% return by investing in ICICI Prudential Balanced Advantage Fund. Because ICICI Prudential Balanced Advantage Fund has given consistent returns for more than 16 years and this fund is one of the best in class with a track record of consistent performance. Statistics show that ICICI Prudential's BAF has given returns at the rate of 13.5 percent in 10 years. By investing in a Balanced Advantage Fund, it is expected that its returns will beat inflation. Better than debt returns. But in the long run the equity returns will be slightly less.

The fund has given SIP return (XIRR) of 11.95% in the last 10 years, which makes it among the category outperformers. According to the data of earnings in three years i.e. till June 15, 2023, IPRU BAFF has given a return of 18 percent and in five years, 11 percent. Its category has given returns of 14.8 and 8.6 per cent, while the CRISIL Hybrid Index has given returns of 15.6 and 11 per cent during the same period.

With macroeconomic and geo-political factors being considered, it becomes difficult for a common investor to make an allocation between equity and debt. And with interest rates hitting new highs, deciding on the right bond strategy becomes challenging. In such an environment, funds like ICICI Prudential Balanced Advantage have deftly managed to move in and out of equity or debt over the last decade or so.

Heavy fall in Sensex

The fund follows a strict in-house valuation model for equities to decide whether the stocks are overpriced or cheap. When the Sensex fell sharply in March 2020 immediately after the pandemic and fell below 29000, the fund increased the net equity in the portfolio to 73.7%. By November 2021 when the market had reached a level of more than 60,000. Then ICICI Prudential Balanced Advantage diluted its net equity by less than 30%. As of May 2023, the net equity level is 39.7%.

Helped a lot in making profits

Given this, the fund was able to buy low and sell high. It also helped investors book profits during high markets, thereby protecting the portfolio from subsequent market downturns. It may be noted that though the net equity exposure can go as low as 30%, the gross equity exposure is generally maintained at 65% and above with the help of derivative investments for hedging equity.