Volatility in the equity market is a common phenomenon which may arise due to any reason. In the last few years, the volatile trends in the market have arisen due to political instability, crude price adjustment, strengthening and weakness of rupee, trade war, and plenty of other reasons. Under such conditions, pure equity schemes become vulnerable while the returns of the pure debt scheme may not interest unsuitable investors. Under such trends, a mandate which dynamically selects the most optimum tool can be highly efficient for the investors. ICICI Prudential Dynamic Asset Allocation Fund is one such scheme which can be the ultimate choice for the investors who want consistent gains on the invested amount. Read to know why experts consider the largely chosen scheme as best choice under volatile market.
What is ICICI Prudential Balanced Advantage Fund?
It is a prominent scheme not only in the category but also in the whole mutual fund industry of India. The snowballing AUM of ICICI Prudential Balanced Advantage Fund has crossed Rs 28,700 crore mark which is an achievement for any hybrid scheme in India. The fund belongs to the dynamic asset allocation category in which the fund managers are allowed to dynamically allocate the corpus of the scheme between equity, debt, arbitrage and derivative tools. The allocation can be shifted anytime whenever the managers find better opportunities in any of the tool.
Why is Dynamic Allocation Ideal for the Volatile Market?
The strategy to shift the allocation dynamically is ideal under changing market trends as the if the equity market is on a downfall, the allocation can be shifted to debt, derivative or can also be kept as cash. Similarly, when there is a surge in the equities, the allocation can be increased in equities which will deliver better gains to the investors. In this way, the funds in the category of dynamic asset allocation category are considered safer for volatile trends in the equity market and when such scheme is provided and regulated by one of the largest and highly reputed asset management companies, it is very likely to be chosen by a mass.
How Good is ICICI Prudential Balanced Advantage Fund?
ICICI Prudential Balanced Advantage Fund has impressive stats for every comparison. There is not one but multiple reasons due to which the fund holds the reputation of being the best in the category. Following are the major reasons:
- It has provided the highest returns in the category for the long term.
- The returns have been consistent and have rarely gone in negative.
- It has a low-risk factor and delivers consistent gains.
- Volatility in any market condition has been least effective on the NAV of ICICI Prudential Balanced Advantage Fund
- It is the most chosen scheme in the category with the highest AUM.
- It is provided by ICICI Prudential Mutual Fund.
- It is managed by 5 different professional fund managers who have decades of experience.
Who Should Invest?
ICICI Prudential Balanced Advantage Fund is ideal for investors who seek risk-adjusted gains from a mix of multiple asset class. The fund delivers consistent returns and is ideal for those who do not want to take the risk in the pure equity scheme. The fund can possess moderate to low risk and delivers consistent gains by grabbing the best opportunities in the market.
Due to its ability to shift the allocation dynamically, ICICI Prudential Balanced Advantage Fund is one of the best schemes to invest if you want to stay away from the volatile trends in the equity market. To know more about the scheme or to start investing today, you can connect with the financial experts at MySIPonline.
