ICICI Pru Balanced Advantage Fund: A Review

icici pru whats your numberDuring my talks on how to be a smart investor, I spend some time on the dangers of seeking tips and the noise in the media. I share some examples of the dangers of instant gratification and how we need to spend some time before we select our investment products.

And every time I ask the participants for any questions, the common question is…..which investment should I buy?

It’s funny and ironical. While we nod and understand that going for tips is not to be done, we end up doing just that!

So while I still refrain from recommending a specific scheme of investments, I do share some of my own investments sometimes. But before suggesting anything, I also talk about their financial goals and where they want to reach. What’s your number, I ask!

Then finally, in the list of a few investments that I suggest, here’s one that has almost a 10 year track record of performance.

The mutual fund scheme that I am talking about was launched on December 30, 2006. The 3 year and 5 year performance is 16.98% and 16.32 % respectively.

The name of the mutual fund scheme is ICICI Prudential Balanced Advantage Fund.

Returns First:
§ Absolute returns for twelve months period for last 3 years: 16.98%
§ Performance of ValueResearch Balanced benchmark: 11.11%

The reason I can confidently suggest the scheme is because of the Fund House mantra and Fund Manager pedigree. They believe in benefiting from an in-house asset allocation model that aims to buy low & sell high. They also aim to gain from market volatility over the long term.

Over the 10 (almost) years, they have garnered over Rs 10000 crores from the investing public. So I am not alone who believes in the Fund House.

Fund Highlights

  • Invests in both equity & debt instruments
  • Provides tax-free returns#
  • Aims to provide month-on-month tax-free dividends$
  • Manage your monthly cash flow with Automatic Withdrawal Plan^ & Monthly Dividend Feature

#As per prevailing tax laws for FY16-17, returns earned after one year are tax free.

$Distribution of dividend is subject to approval from Trustees & availability of distributable surplus

^Automatic Withdrawal Plan is only a feature for regular withdrawal from the scheme and shall not be construed as an assurance or guarantee of return.

Their top investments in equity consists of HDFC Bank, MothersonSumi Systems, ICICI Bank, Maruti Suzuki India, Hindustan Unilever, HCL Technologies, Cipla, Reliance Industries, Infosys and Coal India.

This product is suitable for investors who are seeking long term wealth creation solution. The fund while investing in both equity and debt, focuses on growth by investing in equity and derivatives aggressively.

In any case, Investors should always consult their financial advisers if in doubt about whether the product is suitable for them. How to get the right financial advisor is another question that we will deal with.

Do share your own experience of investing and also if you have any questions.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.