ICICI Prudential Balanced Fund is a well-known product of ICICI Prudential Mutual Fund which seeks to generate long-term capital appreciation and regular income option for its investors. It invests in equities and related securities as well as fixed income and money market securities. It is a balanced category scheme which is known for its conservative nature of investing due to mixed asset allocation to debt and equities. The fund is ideal for defensive players in the investment ground which include newbies and even the ones with a less risk appetite.
To get an insight into this scheme of ICICI Pru Mutual Fund, read this write-up to the end. Also, see if this matches to your investment objectives.
An Overview of the Fund House
ICICI Prudential Asset Management Company is one of the most respected and trusted fund houses in the country. It mainly focuses on covering the distance between savings & investments and generating long-term wealth for its customers through a discreet range of simple, yet robust investment solutions. ICICI Prudential MF proposes an extensive band of retail and corporate investment solutions running through various asset classes - Equity, Fixed Income, and Gold.
Since its humble beginnings, the fund house has continuously worked towards achieving the target of providing its investors with financial solutions to help them achieve their life goals. It has always kept itself on the forefront of innovation and developed numerous products shaped to meet the clients’ needs, thus giving birth to a well-diversified portfolio of about 50 mutual fund products, both equity and debt. The victory of the various endeavors taken by ICICI MF is evident from its investors’ lot which has experienced tremendous growth in the recent past.
Fund’s Insights & Key Benefits of Investing in it
ICICI Pru Balanced Fund is an open-ended balanced fund which is an ideal product for those who are seeking long-term wealth creation solutions along with regular income option. Thus, the investors get to enjoy the benefits of both ends including growth from equities as well as steady income from debt markets. Being a fund from the balanced funds’ basket, it lowers volatility of returns and risk through diversification.
Asset Allocation
The fund has traditionally featured a high equity allocation, hovering at well over 70 percent, which is higher than the allocations of its peers. But in the last one year, the allocation has been moderated from 78-79 percent levels to 66-67 percent of the portfolio. Typically, its allocation to equities ranges in between 60 to 80 percent with a minimum of 51 percent, whereas the approximate debt allocation is 40-49% with a minimum of around 21 percent.
The scheme practices some degree of tactical allocation which is based on market valuations. Within the equities segment, over two-third is parked in large-cap stocks, which is again higher than its peers’ allocations. Talking about its investment style, the fund follows a blended approach of growth and value. Fund manager believes in relying more on duration than credit calls to improve the percentage of returns.
Risk Measures
Fund’s Performance
While going through the table mentioned above, we can see that the fund has outperformed its benchmark as well as the category in the long-term horizons of five, seven, and ten years. Analyzing the longer history of the fund suggests that after the bad period in 2007, 2008, and 2009 proved to be turning points for this scheme. Currently, the fund manager Mr. Sankaren Naren is following a value-conscious approach with a good mix of cyclical and growth plays. However, considering the debt portion, he believes in taking aggressive duration calls. The successful strategies that the fund has been following throughout have made it collect Rs. 27,801 crore assets under its watch.
We hope after going through the insights about the fund, you must be planning to vest in this scheme of ICICI Prudential Mutual Fund. For more information about this fund, visit us at MySIPonline or connect directly with our experts.
To get an insight into this scheme of ICICI Pru Mutual Fund, read this write-up to the end. Also, see if this matches to your investment objectives.
An Overview of the Fund House
ICICI Prudential Asset Management Company is one of the most respected and trusted fund houses in the country. It mainly focuses on covering the distance between savings & investments and generating long-term wealth for its customers through a discreet range of simple, yet robust investment solutions. ICICI Prudential MF proposes an extensive band of retail and corporate investment solutions running through various asset classes - Equity, Fixed Income, and Gold.
Since its humble beginnings, the fund house has continuously worked towards achieving the target of providing its investors with financial solutions to help them achieve their life goals. It has always kept itself on the forefront of innovation and developed numerous products shaped to meet the clients’ needs, thus giving birth to a well-diversified portfolio of about 50 mutual fund products, both equity and debt. The victory of the various endeavors taken by ICICI MF is evident from its investors’ lot which has experienced tremendous growth in the recent past.
Fund’s Insights & Key Benefits of Investing in it
ICICI Pru Balanced Fund is an open-ended balanced fund which is an ideal product for those who are seeking long-term wealth creation solutions along with regular income option. Thus, the investors get to enjoy the benefits of both ends including growth from equities as well as steady income from debt markets. Being a fund from the balanced funds’ basket, it lowers volatility of returns and risk through diversification.
Asset Allocation
The fund has traditionally featured a high equity allocation, hovering at well over 70 percent, which is higher than the allocations of its peers. But in the last one year, the allocation has been moderated from 78-79 percent levels to 66-67 percent of the portfolio. Typically, its allocation to equities ranges in between 60 to 80 percent with a minimum of 51 percent, whereas the approximate debt allocation is 40-49% with a minimum of around 21 percent.
The scheme practices some degree of tactical allocation which is based on market valuations. Within the equities segment, over two-third is parked in large-cap stocks, which is again higher than its peers’ allocations. Talking about its investment style, the fund follows a blended approach of growth and value. Fund manager believes in relying more on duration than credit calls to improve the percentage of returns.
Risk Measures
Fund’s Performance
While going through the table mentioned above, we can see that the fund has outperformed its benchmark as well as the category in the long-term horizons of five, seven, and ten years. Analyzing the longer history of the fund suggests that after the bad period in 2007, 2008, and 2009 proved to be turning points for this scheme. Currently, the fund manager Mr. Sankaren Naren is following a value-conscious approach with a good mix of cyclical and growth plays. However, considering the debt portion, he believes in taking aggressive duration calls. The successful strategies that the fund has been following throughout have made it collect Rs. 27,801 crore assets under its watch.
We hope after going through the insights about the fund, you must be planning to vest in this scheme of ICICI Prudential Mutual Fund. For more information about this fund, visit us at MySIPonline or connect directly with our experts.
No comments:
Post a Comment