This week also, sellers are seen dominating the stock market. That is why yesterday also there was a lot of volatility in the market and at the end of the trading, the market closed flat. Today again the market is volatile. But if you invest in mutual funds instead of investing directly in shares, that too for a long time, then it can give you many times more profit than other assets or benchmarks.

10 lakhs became Rs 7.26 crores in 22 years

For example, let us look at ICICI Prudential Multi-Asset Fund, one of the largest multi-asset allocation funds in the country. An investor who would have invested Rs 10 lakh in this fund 22 years ago, would have become Rs 7.26 crores today. In the same period, the same amount has become only Rs 3.36 crores in its benchmark i.e. Nifty 200 TRI. Data shows that an investment of Rs 10 lakh made in ICICI Prudential Multi Asset Fund on October 31, 2002, has given a return of 21.58 percent compounded annually till September 30 this year. The return of the same investment in the benchmark Nifty 200 TRI has been only 17.39 percent.

How much return from SIP

An investor who would have invested Rs 10,000 per month in this fund through SIP would have become Rs 2.9 crore in 22 years. During this period, the actual investment was only Rs 26.4 lakh. That is, the return has been at the rate of CAGR 18.37 percent. The same investment in the benchmark of the scheme has given a return of 14.68 percent annually.

How much is its AUM

The asset under management i.e. AUM of ICICI Prudential Multi Asset Fund has been Rs 59,495 crore. That is, this fund house has about 48 percent of the total multi-asset allocation AUM in the industry. This means that investors have trusted this scheme fiercely. Nimesh Shah, MD and CEO, of ICICI Prudential AMC, says that the wealth creation journey of his fund is strong proof of the power of disciplined asset allocation across different asset classes. This approach has benefited our investors with profitable investment results over the long term. At ICICI Prudential Mutual Fund, we rely on the expertise of a dedicated team that includes fund managers from equity, debt, and commodity.

Where is the investment made?

ICICI Prudential Multi-Asset Fund invests in equity, debt, and exchange traded commodity derivatives/ units of gold ETFs/ silver ETF units REITs and InvITs. It invests at least 10% of its assets in three or more asset classes. By adopting this strategy, the investor can get more favorable risk-adjusted returns across market cycles.