Prior to investing in a mutual fund scheme, investors are expected to weigh a number of pros and cons, and rightly so! They tend to consider a number of factors such as the category of scheme, reputation of the fund house, macro-economic condition, and the scheme’s historical returns, among other factors.
Here, we give a lowdown on the ICICI Prudential Multi Asset Fund, which has completed 21 years of its existence. The scheme has an AUM of ₹24,060 crore that accounts for nearly 57 percent of the total AUM in the multi asset allocation category.
Historical returns
A lumpsum investment of ₹one lakh in the scheme at the time of inception (October 31, 2002) would have grown to ₹54.9 lakh as on Sept 30 at a CAGR of 21 percent.
On the other hand, a similar investment in the scheme’s benchmark would have yielded approximately ₹25.7 lakh i.e., CAGR of 16 percent.
Tenor | CAGR (%) | Current Value of ₹1 lakh investment (Rs) |
1 | 22.71 | 1.22 lakh |
3 | 29.18 | 2.15 lakh |
5 | 16.46 | 2.14 lakh |
SI | 21.10 | 54.91 lakh |
(Source: Value Research; Returns as on Sept 30, 2023)
In terms of the SIP (systematic investment plan) performance, a monthly investment of ₹10,000 via SIP since the inception would have grown to ₹2.1 crore by making an investment of ₹25.2 lakh i.e., a CAGR of 17.5 percent.
Tenor | Investment (Rs) | Market Value (Rs) |
1 year | 1.2 lakh | 1.34 lakh |
3-years | 3.6 lakh | 4.94 lakh |
5-years | 6 lakh | 10 lakh |
7-years | 8.4 lakh | 15.6 lakh |
10 years | 12 lakh | 27.36 lakh |
15 years | 18 lakh | 64.58 lakh |
SI | 25.2 lakh | 2.1 crore |
As we can see from the table above, a monthly SIP of ₹10,000 in this scheme would have grown to ₹1.34 lakh in one year. In three years, the investment would have grown to ₹4.94 lakh by making an investment of ₹3.6 lakh in 36 months.
Likewise, if the SIPs continued for 10 years, the total investment would have grown to ₹27.36 lakh by making a total contribution of ₹12 lakh. In 15 years, the investment would have risen to ₹64.58 lakh.
In the past 21 years i.e., since the fund’s inception, the total investment would have grown to ₹2.1 crore by making an investment of ₹25.2 lakh.
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Updated: 05 Nov 2023, 11:56 AM IST