Fund of Fortnight

MF Select

ICICI Prudential Multi Asset Fund - Direct Plan (Growth)



Reason for recommendation

The equity market has become choppy again and this will be the character of the market until the general election results and beyond, that is, if there is a hung parliament. In these conditions, investing in funds that are well-diversified not only in terms of different capitalisation such as large-cap, mid-cap and small-cap but also in different asset classes makes an investing sense. ICICI Prudential Multi Asset fund is one such fund that invests in equity, debt and commodity. According to the SEBI circular on the categorisation of mutual funds, multi-asset schemes need to invest in at least three asset classes, with a minimum allocation of atleast 10 per cent in all the three asset classes.

The fund, at the end of December 31, 2018 invested around 66 per cent of its corpus into equity, 11 per cent in commodities, 15 per cent in debt and remaining in cash. In equity, the fund has invested in large-cap stocks that are a blend of growth and value. This has helped the fund to create alpha for its investors. The fund has the best alpha and Sharpe ratio among its category.


Going ahead, as the market will remain volatile, the presence of stocks such as NTPC, ONGC and ITC gives much stability to the fund’s return. This will be further aided by the presence of debt instruments that are likely to offer better returns than equity market in the near-term.



This might not be top ranked fund, however, looking at risk-reward opportunity we recommend this fund.
* Expected one year return is based on the assumption that current holdings remain constant
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