How Investing in ICICI Balanced Advantage Fund Beneficial in Market Volatility?

There is a famous saying in America that the time to prepare for a perfect storm is not when the wind is tearing the roof off your house, but before the storm hits. This saying works fit for the financial market which is highly volatile as of now, and investors should balance their portfolio by investing in diversified assets. This will help them to protect their capital and work for long-term capital appreciation. One such fund in the category that is analysed by the financial analysts of MySIPonline is ICICI Prudential Balanced Advantage Fund. The fund has adopted the dynamic asset allocation approach which helps the investor to increase diversification in their portfolio.

An Overview of ICICI Prudential Balanced Advantage Fund

How Can Re-Balancing Portfolio Downside Risk?

The dynamic asset allocation of ICICI Prudential Balanced Advantage includes such portfolio which manages physical securities such as stocks or bonds, or implementing overlay-based strategies including arbitrage opportunities. This replaces the complexity for the investors as well as reduces their overall risk.

At the same time, the risk measures of the fund also show that it is less volatile than its category. The SD of the fund is lower than its peers as well as the benchmark. Higher Sharpe ratio also shows that the fund can manage to offer risk-adjusted returns which make it one of the best funds in the category.

As per the financial analysts of MySIPonline, the fund has performed well than other funds which is cleary seen through its alpha that is negative, but outperforming its category. All these facts show that it is a good fund that helps the risk-averse investors to downside risk in their portfolio by re-balancing capital in multiple assets.

Besides this, if we look at the overall performance of the fund, it has performed well in the overall market cycles. When in the year 2014 and 2015, the market was going through bull and bear phase, both and Sensex had delivered the CAGR of 5.4%, but it has given the CAGR of 15% approximately.

These returns depict that the fund keeps the technique to perform well even when the market takes a downturn. This also reduces the overall risk for the investors, as the fund management team has the calibre to offer sustainable returns by reducing the volatility.

Benefits in Volatile Market

ICICI Prudential Balanced Advantage Fund Growth Scheme invest across various assets on the basis of the market conditions. It increases or decreases its exposure to the equities on the basis of the market valuations and volatility. It uses price to book value (P/BV) measure to decide its allocation strategy and changes allocation in equities and debt depending on the P/BV ratio prevailing in NIFTY. This investment strategy diminishes the volatility in the portfolio of the fund and helps investors to minimise risk.

In sharp corrections also, a mix of debt and equity portfolio would face lower volatility than a pure equity fund. As per the financial analysts of MySIPonline, this mix of assets will give a good experience to the one who is not penchant to high-risk as well as novice investors.

Therefore, the investors who have invested in equity funds or don’t want to invest in pure equity schemes due to the volatility can invest in ICICI Prudential Balanced Advantage Fund G, which will limit the downside risk without hitting returns too much.

For more information regarding this fund, you can connect with us via call or email. You can also submit your queries regarding investment in the regular plan of ICICI Pru Balanced Advantage submit it here https://goo.gl/WofRJm, and we will get back to you as soon as possible. 

How Can ICICI Prudential Balanced Advantage Fund (G) Add Laurels to Your Investment?

It is difficult to choose an equity-oriented mutual fund when the equity market is facing irregular ups and downs. The new investors under such condition may hesitate to invest in mutual funds. Hybrid mutual funds can shape themselves according to the market conditions so that the volatility in NAV gets minimized. One such popular fund is ICICI Prudential Balanced Advantage Fund. This fund can increase or decrease the allocation of the amount invested in each asset class. If equity market is on the rise, it can shift the majority of corpus allocation towards equity instruments while during the bear market the allocation on equity instruments can be decreased, hence such schemes can be more beneficial than 100% equity or debt funds. To invest in this scheme, connect with the official website of MySIPonline and enhance your investment strategy.

ICICI Prudential Balanced Advantage Fund (G)

It is an equity-oriented hybrid fund which has been chosen by thousands of investors as a result within 12 years of its launch in December 2006. It has assets under management of Rs 27,123 crore (as on April 30, 2018). The fund aims to deliver consistent growth in returns in the long-term. It has fulfilled the goals of the investor in the longer horizons.

The fund manager invests 60-70% of the corpus in equity instruments and 30-40% in debt instruments. The allocation of the corpus can be changed according to the market condition to get the maximum output while exposing the corpus to the low-risk factor. The equity instruments are based on companies of finance, automotive, technology, and pharmaceutical sector. The debt instruments comprise commercial papers, bonds, fixed deposits, certificate of deposits, and government securities.

The fund has shown an annualized growth of 11.8% in 2 years and 14.2% in 5 years. It competes with the benchmark of CRISIL Hybrid 50+50 Moderate Index. Rs 10,000 invested 5 years ago would have become 19,457 by now.

Fund Manager

The fund is managed by a team of 5 highly qualified and professional fund managers which are introduced below.

• Sankaran Naren (Since Jul 2017): He is the CIO of ICICI Prudential AMC and a graduate from IIT Chennai and IIM Kolkata. He is the equity specialist and has a good experience in equity market.
• Rajat Chandak (Since Sep 2015): He is associated with ICICI Prudential AMC since 2008, and is a B.Com and MBA.
• Manish Banthia (Since Nov 2009): He is a B.Com, CA, and MBA. He is associated with ICICI Prudential AMC since October 2005, and has more than 15 years of experience. 
• Atul Patel (Since May 2012): He has national as well as international experience in the finance sector. He is B.Com, CA, and CWA.
• Ihab Dalwai (Since Jan 2018): He is associated with ICICI Prudential AMC since April 2011, and is a B.Com and CA.

ICICI Prudential Balanced Advantage Fund G comes under the umbrella of ICICI Prudential Mutual Fund which is one of the most trusted and popular AMCs in India. The fund is designed for the investors who want to keep a balance between equity and debt. It is also advisable to the investors who are new to the world of mutual fund investments. For more details about the scheme and to check your suitability with the scheme, browse through the official website of MySIPonline where investors are introduced with every pros and con of the schemes and are provided honest opinions by experienced financial experts.