Investment Tips: The intention of those who invest in mutual funds is that their money should be safe as well as get strong returns on it. If you are also looking for such a fund, then your option in the form of Balanced Advantage Fund can be fulfilled.
New Delhi. Those who invest in mutual funds and stock market have only one intention to get a lot of returns on it. Every investor invests money after thinking very carefully about this, but due to lack of right option, many times the desired result is not available. But, if you are looking for an option that is safe and gives good returns, then ICICI Prudential Balanced Advantage Fund can fulfill that search. This fund has given 3 times return as compared to FD. This fund has doubled investors’ money in an average of 6 years.
ICICI Prudential Balanced Advantage Fund (BAF) is one of the best in its category with a track record of consistent performance spanning over 16 years. The fund has a smart mix of Stocks, Bonds and Derivatives (for hedging) thereby reducing the risk and generating stable returns. If you see the return of 10 years, then it has been 13.5 percent. A balanced fund means that it has less risk but gives more returns than debt. SIP of this category has given a return of 11.95% in the last 10 years.
How much return in 3 years
If you get a 3-year bank FD, then you get an average return of 6% on it. On the other hand, if we look at the returns of Balanced Advantage Fund, it has given a return of 18% in three years till June 15, 2023. If you look at its 5 year returns, then you have got 11 percent. If you look at the returns of the entire category, 14.8 per cent returns have been received in 3 years, while 8.6 per cent returns have been received in 5 years. CRISIL Hybrid Index has also given 15.6% returns in 3 years and 11% returns in 5 years.
How to get strong returns
If we talk about the good returns of Balanced Advantage Fund, then it is possible only when a lot of caution is exercised regarding investment in equity. Investing in equity is done only when the stocks are cheap and sold when they are expensive. During the Corona epidemic, the Sensex had fallen by about 50 percent to around 29 thousand. Since then this fund has increased its investment in equity to 73.7 per cent. After this, the market started rising and in November 2022, when the Sensex increased to 60 thousand, the fund reduced the investment in equity to 30 percent. At present, its equity investment till May is 39.7%.
Puts more emphasis on equity
This fund has given high returns at low cost and the biggest reason for this is to increase the exposure to equity. The biggest secret of this fund’s success is that when the market declines, it reduces its exposure to equity to 30 per cent, whereas when the market environment is good, the equity exposure increases to 65 per cent.
