ICICI Prudential Asset Allocator Fund: MF Investment An investment of Rs 10,000 crore in two years; this mutual fund scheme is very popular in a short span of time – icici prudential asset allocator fund breach 10k crore mark in just two years

Mumbai: The Asset Allocator Fund of ICICI Prudential Fund, the second largest mutual fund company in the country, has attracted huge investments in the last two years. In just two years, the total investment in ICICI Prudential Asset Allocator Fund has increased to Rs 10,731 crore. Two years ago, the fund had an investment of Rs 18 crore.

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ICICI Prudential Fund has made a strong start with Asset Allocator Fund in this category of mutual funds. Such categories of funds are known as dynamic asset allocation funds. As per the profit figures, the total assets of the fund in February 2019 were Rs 18 crore. It has multiplied in two years. As on April 30, 2021, the total assets of this fund have reached Rs 10,731 crore.

This fund scheme gives investors the opportunity to invest in various asset options like gold, equity, debt. 0 to 100% is invested in each asset. This creates an in-house valuation model.

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At the beginning of 2020, according to the in-house valuation model, 40 per cent of the funds were invested in equities. Investments in equities were raised to 83 per cent during the Corona crisis, when capital markets plummeted. However, in April 2021, the equity investment ratio has been reduced to 37%. The fund’s investment formula is to increase equity investment when the market is down and to limit investment when the market is bullish.

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The in-house valuation model also had an effect on the performance of this fund. In one year, the fund has returned 42.7 per cent. During the same period, the fund reduced its equity investment by 58 per cent. If you look at the performance of this fund, the return of this fund is 7% higher than that of the competing fund. It has done the same over a period of two years.

In April 2020, 52% of the fund’s portfolio was in debt. 36 per cent was invested in equities and 6 per cent in gold. In equities, the fund mainly deals in shares of large and medium-sized companies. Focuses on banking, infra, healthcare, FMCG and commodities. This fund has the potential to perform well in the long run.