Celebrating wealth growth: Multi-asset fund transforms Rs 10 lakh into Rs 5.49 crore at staggering 21 per cent CAGR!

The fund has recently celebrated its 21st anniversary, marking a significant milestone by achieving a remarkable 21 per cent CAGR throughout its journey!

ICICI Prudential Multi-Asset Fund, one of the country's largest multi-asset allocation funds, has recently celebrated its 21st anniversary. Remarkably, as of September 30, 2023, the fund boasts an impressive Assets Under Management (AUM) of Rs 24,060.99 crore, constituting a substantial 57 per cent of the total AUM within the multi-asset allocation category. This accomplishment underscores the significant degree of investor trust placed in the fund.

To put this remarkable achievement in perspective, consider that an initial lump sum investment of Rs 10 lakh made at the fund's inception on October 31, 2002, would have appreciated to an estimated value of approximately Rs 5.49 crore by September 30, 2023, representing a remarkable Compound Annual Growth Rate (CAGR) of 21 per cent. In comparison, a similar investment in a composite benchmark portfolio comprising Nifty 200 TRI (65 per cent), Nifty Composite Debt Index (25 per cent), Domestic Price of Gold (6 per cent), Domestic Price of Silver (1 per cent), and iCOMDEX Composite Index (3 per cent) would have yielded approximately Rs 2.57 crore, equating to a CAGR of 16 per cent. These numbers underscore the impressive performance and potential wealth-building capabilities of the ICICI Prudential Multi-Asset Fund.

When evaluating the performance of SIP, an individual who consistently invested Rs 10,000 per month since the fund's inception, resulting in a total investment of Rs 25.2 lakh, would have seen their investment grow to an impressive Rs 2.1 crore as of September 30, 2023. This signifies a noteworthy CAGR of 17.5 per cent. In comparison, a similar investment in the fund's benchmark would have generated a CAGR of 13.7 per cent.

The ICICI Prudential Multi-Asset Fund is a dynamic open-ended investment scheme that strategically allocates its funds across various asset classes, including equity, debt, exchange traded commodity derivatives, units of Gold ETFs, units of REITs & InvITs, and preference shares. This diversified investment approach is designed to generate returns over an extended investment horizon. Notably, the scheme ensures diversification by dedicating a minimum of 10 per cent of its assets to three or more asset classes, ensuring a well-balanced and risk-managed investment strategy.

Disclaimer: This article is for informational purposes only and should not be considered investment advice.