If you invest in mutual funds for a long time, then it gives better returns. The biggest advantage is that you get compound interest. ICICI Prudential Debt and Equity Fund has given returns of 15% compounded annually (CAGR) over 22 years. That is, the investment of 1 lakh in 22 years has become Rs 21.76 lakh.
Fund started in 1999
ICICI Prudential Debt and Equity Fund was incorporated on 3 November 1999. This is a hybrid fund which used to be a balanced fund earlier. Its Asset Under Management (AUM) is Rs 18,794 crore. This fund invests 65 to 80% in equities. Invests 20 to 35% in debt. In the same time frame, Nifty 50TRI has given a return of 14.04%. Based on this investment of 1 lakh was made to be Rs 18 lakh.
Better returns from SIP
Talking about Systematic Investment Plan i.e. SIP, then if someone has made a monthly investment of 10 thousand rupees in this fund, then this amount has become Rs 2.11 crore by 31 October 2021. Whereas the total investment was only Rs 26.4 lakh. That is, the return has been received at the rate of CAGR 16.22%. Nifty 50 has given a return of 15.35% in the same time period.
Gain of 61.39% in one year
ICICI Prudential Debt and Equity Fund has given a return of 61.39% in the last one year. Its benchmark CRISIL Hybrid has given a gain of only 28.67%. This category has given a return of 40.89% in one year. S Naren, Chief Investment Officer (CIO) of ICICI Prudential Mutual Fund remains very positive about this fund.
Invest in large, mid and small caps
The scheme has investments in large, mid and small caps. As of 31 October 2021, it has invested 90% in large caps while 5-5% in mid and small caps. Investment in equity is determined through the in-house model. The fund has an overweight position in Power, Telecom, Oil. This scheme can also invest in foreign shares in equity. In the debt segment, this scheme invests in fixed income. It consists of government securities and other segments.
In the debt segment, this fund invests in papers that have good credit quality and have good ratings. Such papers are rated AA and above. Experts say that in such a situation, if you want to invest in hybrid funds, then you can think of such funds.