Balanced mutual funds are the mix of equity and debt investments, which aim to deliver consistent returns and growth with moderate risk appetite. The portfolios of the schemes falling in this category hold a proportionate allocation of the assets in equities and debt instruments across various sectors and market caps. The schemes are bifurcated in two different categories which include the equity-oriented balanced schemes and the debt-oriented balanced schemes as per the asset allotment in the respective instruments.
ICICI Balanced Fund is an equity-oriented plan having majority of the assets allocated to the equity stocks and securities of different sectors and companies. The investors seeking growth of capital with minimised risk can opt for this plan as it offers the dual advantage of regular income and capital appreciation. Let’s elaborate the factors which need to be kept in mind by the investors if they are opting for
ICICI Prudential Balanced Fund Growth for their portfolio.
Overview of the Fund
Being an open-ended scheme, it is highly flexible in nature and tends to re-balance the portfolio as per the requirement of the investors. The fund manager of this scheme take care of the asset allocation by constantly investigating the market outlook and performance in order to increase or decrease the equity exposure for the purpose of attaining the objective of the scheme.
ICICI Balanced Fund seeks to optimise the risk-adjusted returns by making adequate allocation of the assets in both equity and debt markets. As per the investment strategy of the fund manager of this scheme, during the bullish phase, the equity exposure may reach even up to 80% making debt allotment just 20% of the total assets in the fund. On the flip side, during bearish market, the fund manager may reduce equity exposure to 65%. With this, the investments in this scheme are less volatile in comparison with the other schemes falling in the balanced fund category.
The key benefits of investing in this plan include:
ï¬The dual benefits of capital appreciation and financial stability with regularity in income.
ï¬Lower volatility of the returns with minimised risk due to wide diversification.
ï¬ICICI Balanced Fund is best suited to the investors who are seeking long-term wealth creation with a balanced portfolio and minimised risk exposure.
ICICI Balanced Fund - Performance Details
The returns yielded by the schemes depict their potential to generate profits in different market situations. The absolute annual returns of ICICI Balanced Growth Fund has been notable for a long time, and have reached up to 45.3% in the year 2014. The last year returns were 13.3% irrespective of the market fluctuations. Moreover, the annualised returns offered by the schemes are 17 and 20.40 percent respectively. This shows that it performs tremendously in the long run and overcome the benchmarks to offer expected returns to the investors. Accordingly, you can analyse that the scheme has the ability to provide exceptional returns to the investors irrespective of the market moves.
Portfolio Review
Being an equity-oriented plan, the scheme has majority of the assets allocated to the equity stocks and securities while the remaining has been parked in the debt instruments. It has a growth style of investing according to which it tends to provide extraordinary growth opportunities to the investors.
The allocation of the assets across different sectors depicts that the fund has wide diversification due to which the risk appetite is moderate. The majority of the funds has investments in the financial, energy, technology, communication, automobile, healthcare, and FMCG. The top holdings of equity stocks are ICICI Bank, Bharti Airtel, Tata Chemicals, Tata Motors, Power Grid Corporation, Infosys, and Tata Steel. Hence, one can evaluate that the scheme has high capacity to offer growth opportunities over a period of time.
For the debt investments, the funds are parked in the SOV, AA, Cash Equivalent, and AAA rated instruments which have the power to yield higher returns. The instruments include government securities, bonds, debentures, and future instruments of renowned organisations. rnSo, this can be analysed here that the fund has a great prospective to generate the expected profits for the investors. With a high worth portfolio and strong performance in the past, this can be assured up to some extent that investing in this plan shall definitely help one in attaining the financial desires within time. So if you find ICICI Balanced Fund suitable for your portfolio, you must buy it right away.
This article explains all the facts that one needs to know about ICICI Balanced Fund before betting one’s capital in it. If you are interested in buying this balanced mutual fund for your portfolio, this article is a must read for you.