Mutual fund investment: This fund turned Rs 10 lakh to Rs 7.5 crore in 22 years; check investment details

ICICI Prudential Multi-Asset Fund has delivered a commendable 21.29% return since its establishment on October 31, 2002, making it an open-ended scheme worth considering. As of September 30, 2024, the fund has an impressive Asset Under Management (AUM) of Rs 50,495.58 crores, marking its 22nd anniversary. Holding a significant market share of 48.29% in the multi-asset allocation category, it has established its reputation as a preferred choice for investors looking for diversified, long-term growth opportunities.

The fund's investment approach focuses on diversifying investments across various asset classes and market capitalizations to achieve long-term returns. The fund takes a well-rounded approach by allocating a minimum of 10% of the portfolio to three or more asset classes. This strategy improves diversification and delivers consistent returns during both uptrends and downtrends in the market.

This fund strategically allocates investments in equity, debt, exchange-traded commodity derivatives, gold and silver ETFs, as well as units of REITs & InvITs, offering a comprehensive portfolio to help investors achieve their financial goals.

The fund's investment strategy emphasizes spreading investments across multiple asset classes and market capitalisations to generate sustainable long-term returns. A minimum of 10% of the fund's assets must be allocated to at least three different asset classes.

Investment and returns

According to data from Value Research, ICICI Prudential Multi-Asset Fund has delivered annual returns of 27.25% over a one-year period, 18.48% over three years, 21.10% over five years, 14.33% over ten years, and 18.87% over twenty years.

The ICICI Prudential Multi-Asset Fund has transformed an initial investment of Rs 10 lakh from investors into Rs 7.26 crore over a span of 22 years, achieving a remarkable Compound Annual Growth Rate (CAGR) of 21.58%. In comparison, investing a similar amount in the scheme benchmark would have resulted in a total of Rs 3.36 crore during the same period. 

The scheme benchmark comprises various indices including the Nifty 200 TRI (65%), Nifty Composite Debt Index (25%), Domestic Price of Gold (6%), Domestic Price of Silver (1%), and iCOMDEX Composite Index (3%).

For investors choosing the Systematic Investment Plan (SIP) route, a monthly investment of Rs 10,000 accumulating to Rs 26.4 lakh over 22 years, would have matured to around Rs 2.9 crore by the end of September 2024, representing a Compound Annual Growth Rate (CAGR) of 18.37%. In contrast, investing the same amount monthly in the benchmark index would have resulted in a CAGR of 14.68%.

Nimesh Shah, Managing Director & CEO of ICICI Prudential AMC, said: "ICICI Prudential Multi-Asset Fund’s journey of wealth creation is a strong testament to the power of disciplined asset allocation across diverse asset classes. This approach has benefited our investors over the long term with rewarding investment outcomes.”

S Naren, ED & CIO, ICICI Prudential AMC, said: “Over the past decade and beyond, the performance of various asset classes has demonstrated that the top performer often shifts from year to year. In this dynamic environment, spreading one's investments across different asset classes is an effective way to capitalize on the unique opportunities each offers. By adopting this, investors can achieve a more favourable risk-adjusted return across market cycles.”