ICICI Pru Balanced Advantage Fund

ICICI Prudential Mutual Fund’s newest mutual fund scheme, ICICI Prudential Balanced Advantage-Growth, utilises a Dynamic Asset Allocation investment approach. This fund has been around for 16 years and two months, having been established on November 8th, 2006, and is now managed by Manish Banthia, Ritesh Lunawat, Ihab Dalwai, Sankaran Naren, Rajat Chandak, and Sri Sharma.

The portfolio has a 65.63% allocation to domestic equities, with 53.04% allocated to Large Cap stocks, 4.57% to Mid Cap companies, and 0.55% to Small Cap stocks. The fund has a debt allocation of 23.44%, with 16.75% invested in government securities and 6.16% in low-risk assets.

The returns for the previous year on the ICICI Prudential Balanced Advantage-Growth were 5.50%. Since its inception, investors have seen average yearly returns of 10.90%. Every 7 years, the amount of money that was invested in the fund has increased by a factor of 2. The minimum investment for a lump sum payment is 500 INR, whereas the minimum investment for SIP is 100 INR. There is no lock-in period for the ICICI Prudential Balanced Advantage Fund Direct Plan-Growth.

The objective of the investment strategy is to generate capital appreciation as well as income by investing in stocks and other equity-related securities, such as derivatives, as well as debt and money market instruments. However, there is neither a promise nor a warranty that the investment goal of the Scheme will be attained in any way, shape, or form.

Pros & Cons

How to invest in ICICI Balanced Advantage Fund?

5paisa makes it easy to invest in the ICICI Balanced Advantage fund. Paperwork has been eliminated completely, and the procedure has been simplified. Simply follow the directions outlined below:

What is the expense ratio of the ICICI Balanced Advantage Fund?

For each year that your money is invested in a particular Mutual Fund, the annual fees charged by the Mutual Fund provider to manage your money are expressed as the Expense Ratio. Fund returns are reduced by an amount equal to the Expense Ratio, which is calculated as a percentage of AUM.

A fund with a lower cost ratio is preferred since a smaller percentage of your gains will go toward covering expenses.

Who should invest in ICICI Balanced Advantage Fund?

Investors that are looking for a product that can be traded throughout the year and does not need market timing, and seek to profit from volatility might consider this scheme. It is also recommended for investors who want to take part in stock markets while maintaining a somewhat cautious stance.

What are the benefits of investing in the ICICI Balanced Advantage Fund?

Uses market uncertainty to your advantage

By actively managing the net equity levels based on the premise of buying low and selling high, asset allocation provides investors with the ability to better control market volatility.

Best of both worlds

The scheme makes investments in both equity and debt, providing investors with exposure to both asset classes in a manner that is strategic and tailored to the current market circumstances.

Manages investor behaviour

Since the portfolio is handled dynamically, asset allocation may assist in the management of human emotions such as fear and greed. In this way, investors are protected from making choices that might undermine their long-term financial objectives.