Hybrid mutual funds invest in stocks, bonds, or commodities, depending on the fund’s investment objective. These are considered to be less risky compared to pure equity funds. Did you know that this hybrid mutual fund has generated the highest returns in the past 20 years, reaching from 100,000 to 3.1 million?In this article we will talk about ICICI Prudential Multi-Asset Fundits portfolio, performance, and provides our views on such funds.
Also read: 5 mutual fund schemes with 3-year returns of 160% to 215%
How did we filter this funding?
- We considered all hybrid mutual funds, including hybrid aggressive, hybrid balanced, hybrid conservation, multi-asset allocation, balanced advantage funds, and more.
- We’ve filtered for the single funds that have created the most wealth over the past 20 years.
- I was able to get ICICI Prudential Multi-Asset Fund which turned Rs 100,000 crore into Rs 310,000 crore in the last 20 years.
About ICICI Prudential Multi-Asset Fund
The scheme’s objective is to provide investors with capital value enhancement by investing primarily in equities and equity-related instruments and across other asset classes.
Simply put, this fund invests in stocks, debt instruments, and other instruments.
ICICI Prudential Multi-Asset Fund – Portfolio
The fund currently invests 66% in equities, 12% in debt, and 22% in TREPS and other mutual fund units.
The top 10 companies in the company’s equity portfolio consist of ICICI Bank, NTPC, Maruti, HDFC Bank, Reliance Industries, SBI Cards, Infosys, Bharti Airtel, ONGC and ICICI Lombard.
As part of our debt portfolio, we invest in GOI bonds, low risk NCDs and bonds.
As part of other categories of investments, the company is currently investing in Treasury Bills Repurchase (TREPS) and other MF units.
ICICI Prudential Multi-Asset Fund – Performance Details
Since we are talking about 20 years of mutual fund performance here, the details shown are for the regular plan since the Direct plan came into effect only 11 years ago.
Absolute return of the fund
- 1 year return: 30.7%
- 2 year return: 46.3%
- 3-year return: 84.7%
- 5 year return: 145.3%
- 10 year return: 362%
- 20 years rate of return: 3,010% (1 lac equals 31.09 lacs)
Annualized return of the fund
- 1 year return: 30.7%
- 2-year annualized return: 20.9%
- 3-year annualized return: 22.6%
- 5-year annualized return: 19.6%
- 10-year annualized return: 16.5%
SIP fund returns
- 1 year: 32.5%
- 2 years: 25.3%
- 3 years: 23.1%
- 5 years: 23.3%
- 10 years: 16.8%
A lump sum investment of $100,000 is
- 1 year: 130,000 yen
- 2 years: 1.46 million rupees
- 3 years: 18,500
- 5 years: 2.45 million yen
- 10 years: 4.62 million rupees
- 20 years: 31.09 million rupees
A SIP investment of 10,000 would look like this:
- 1 year: Invested $120,000, now worth $140,000
- 2 years: Invested $240,000, now worth $307,000
- 3 years: Invested 3.6 million, current value is 5.05 million
- 5 years: Invested 600,000 and current value is 107,700.
- 10 years: Invested 1.2 million, current value is 17.2 million
- 20 years: invested 24 million, current value is 1.63 billion
Rolling return perspective:
3 year rolling return:
- Profit greater than 20% – 49% probability
- 15%-20% return – 34% chance
- 12%-15% return – 11% chance
- 0% to 12% return – 6% chance
- Negative return – zero times
5 year rolling return:
- Return greater than 20% – probability is 1%
- 15% to 20% return – 18% chance
- 12% to 15% return – 47.5% chance
- 0% to 12% return – 5.5% chance
- Negative return – 28% chance
Also read: 5 mutual fund schemes with returns of 3,370% to 4,700% over 20 years
What do we think about this fund?
- It is a hybrid fund that invests 66% in equities, 12% in debt instruments and the rest in other instruments. The stock composition ratio is 47.5% large-cap stocks, 6% mid-cap stocks, and 2% small-cap stocks.
- The fund’s beta value is 0.6. This is a measure of the fund’s sensitivity to market movements. A beta value of less than 1 indicates that the fund is less volatile relative to the top and bottom of the benchmark. A beta value greater than 1 indicates that the fund is more volatile compared to the benchmark.
- Alpha is 10.3. This is a measure of the additional return provided by the fund compared to the benchmark.Investors should prefer high alpha funds that can generate higher returns
- The fund has consistently returned 21.4% annually since its inception.
- This fund is aimed at medium to high risk investors as it invests primarily in equities and a portion in debt funds. Such funds can be invested by him for a holding period of five years or more.
![Suresh KP](https://myinvestmentideas.com/wp-content/uploads/gravatar/suresh-kp-myinvestmentideas.com-founder.jpg)
![Suresh KP](https://myinvestmentideas.com/wp-content/uploads/gravatar/suresh-kp-myinvestmentideas.com-founder.jpg)