This Hybrid Fund generated 8.6% returns in last 5 calendar years (Consistently)


Inventory markets are unstable within the final 6-9 months. Returns from fairness funds would fluctuate with such volatility as they put money into direct fairness. Debt funds has been producing low returns within the final 1 to 1.5 years. Nonetheless, there’s one and just one hybrid mutual fund scheme that generated over 8.5% persistently yearly. In reality, this fund that generated 8.6% to 16.6% returns yearly persistently. On this article we might discuss ICICI Prudential Asset Allocator FoF, a dynamic asset allocation fund that generated over 8.6% returns yearly within the final 5 years.

Additionally Learn: That are the High 10 Mutual Funds with highest SIP returns in final 10 years

About ICICI Prudential Asset Allocator FoF

The funding goal of the scheme is to generate capital appreciation primarily from a portfolio of fairness, debt, and gold schemes accessed via the diversified funding types of underlying schemes.

This fund doesn’t make investments instantly in fairness or debt devices or gold. Nonetheless, it will put money into one other mutual fund scheme that invests fairness or gold or debt devices. Therefore that is referred to as fund of funds (FoF).

Why are we speaking about ICICI Prudential Asset Allocator FoF?

There are over 185 odd hybrid mutual fund schemes. These hybrid funds are additional sub categorized as aggressive hybrid funds, conservative hybrid funds, balanced funds, fairness financial savings funds, arbitrage funds, dynamic asset allocation funds and multi asset allocation funds.

These funds have generated returns between -18% (minus) to 80% within the final 5 calendar years (Jan to Dec). Nonetheless, there is just one single hybrid fund that generated over 8.5% persistently each calendar yr i.e. 2017, 2018, 2019, 2020  and 2021.

High Holdings of ICICI Prudential Asset Allocator FoF

At the moment it invests 48% in debt, 31% in fairness, 11% in gold and 10% holds in money.

Listed below are the highest fairness holdings of this fund.

Firm % Belongings
ICICI Pru Massive & Mid Cap 6.3
ICICI Pru Worth Discovery Fund 6.2
ICICI Pru Know-how 5.1
ICICI Pru Banking and Monetary Companies 3.4
ICICI Pru Bharat Consumption Fund 2.7
ICICI Pru Infrastructure Direct 2.6
ICICI Pru Enterprise Cycle Fund 1.6
ICICI Pru Dividend Yield Fairness 1.3
ICICI Pru P.H.D Fund 1.2
ICICI Pru Exports and Companies 1.0
ICICI Pru India Alternatives Fund 0.9
ICICI Pru FMCG 0.6
ICICI Pru US Bluechip Fairness 0.5

Listed below are the highest debt holdings of this fund.

Firm 1Y Vary % Belongings
ICICI Pru Floating Curiosity Direct-G 9.14 – 21.77 21.49
ICICI Pru Financial savings Direct -G 9.23 – 23.08 13.77
ICICI Pru All Seasons Bond Direct-G 8.15 – 11.41 8.77
ICICI Pru Extremely Brief Time period Direct-G 0.00 – 13.30 3.64
ICICI Pru Gilt Direct-G 1.12 – 8.38 1.73
ICICI Pru Medium Time period Bond Direct-G 0.00 – 1.71 1.68
ICICI Pru Bond Direct-G 0.00 – 5.99 0.62
ICICI Pru Credit score Danger Direct-G 0.00 – 0.58 0.52

ICICI Prudential Asset Allocator FoF – Efficiency and Danger Metrics

This fund has a low beta of 0.73. Beta refers back to the volatility of the fund in comparison with its benchmark (which is 1). Any fund that has a beta of decrease than 1 could be thought-about as much less unstable in comparison with the benchmark.

This fund has a excessive alpha of three.45. Alpha is extra returns earned over the benchmark. Any fund that has alpha of greater than zero can present increased returns in comparison with benchmark.

Listed below are the returns by calendar yr (Jan to Dec) in final 5 years.

2017 – 15.3%

2018 – 8.6% (Lowest)

2019 – 9.7%

2020 – 13.4%

2021 – 16.6% (Highest)

From a 3 yr rolling return perspective, this fund generated:

  • Over 12% returns – 62% of the instances
  • 8% to 12% returns – 16% of the instances
  • < 8% returns – 22% of the instances
  • Destructive returns – zero instances

From a 5 yr rolling return perspective, this fund generated:

  • Over 12% returns – 48% of the instances
  • 8% to 12% returns – 45% of the instances
  • < 8% returns – 7% of the instances
  • Destructive returns – Zero instances

It has a low expense ratio of 0.07% because the underlying funds even have bills being charged.

This fund benchmark is CRISIL Hybrid 50+50 Reasonable Index.

This fund generated 12% annualized returns in final 3 years, 10% annualized returns in final 5 years and 12% annualized return since inception.

Funds AUM is Rs 15,824 Crores.

Worth Analysis charges this fund as 4 Star now. Nonetheless, such scores can change sooner or later.

Additionally Learn: Checklist of 10 Dividend Yield Mutual Funds to put money into 2022

ICICI Prudential Asset Allocator FoF – Do you have to make investments?

It is a dynamic asset allocation fund that invests in fairness, debt and gold asset courses. It doesn’t make investments instantly in these asset courses, nevertheless it will make investments via different ICICI mutual fund schemes. That is one and just one hybrid mutual fund that generated over 8.6% returns within the final 5 calendar years persistently. Buyers who wish to diversify their funding portfolio with funding in multi property (fairness, debt and gold) with reasonable returns, can make investments on this mutual fund scheme.

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Suresh KP
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