Big SIP Returns by ICICI Prudential Equity and Debt Fund: ICICI Prudential Equity & Debt Fund recently completed 25 years of its inception. During this period, this scheme has given surprising returns to its investors. In this aggressive hybrid fund, a fund of Rs 2 crore has been created in 25 years with a monthly SIP of Rs 5000. Value Research has given this scheme a 5 star rating, which shows its strength and better performance. We will look further at the special things related to this scheme. But first let us know what aggressive hybrid fund means.
Aggressive Hybrid FundWhat is the meaning?
Aggressive hybrid funds can provide investors the benefit of balanced investment in equity and debt. According to SEBI rules, 65% to 80% of these funds are invested in equity and the remaining 20% to 35% are invested in debt instruments. This combination gives investors the benefits of both growth and stability. While the majority of the fund is invested in equities, it is expected to generate high returns, while investing in debt instruments provides stability to the fund and reduces its negative impact during market downturns.
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Performance of ICICI Prudential Equity & Debt Fund
ICICI Prudential Equity and Debt Fund has given excellent returns to investors on investments made through lump sum and SIP. If an investor had made a SIP of Rs 5000 every month after investing a lump sum of Rs 50 thousand in this fund 25 years ago, then the current fund value of his investment would be around Rs 2 crore. Whereas his total investment during this period will be only Rs 15.5 lakh.
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Calculation of 25 year returns of the scheme
- Lump sum investment: Rs 50,000
- Monthly SIP: Rs 5000
- Investment period: 25 years
- Total investment in 25 years (Lump Sum +SIP): Rs 15.50 lakh
- Fund value after 25 years: Rs 2,00,49,509 (about Rs 2 crore)
- Annulized return on lump sum + SIP in 25 years: 16.55%
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Special things related to the scheme
– Fund Name: ICICI Prudential Equity & Debt Fund
– Fund Type: Aggressive Hybrid Fund
– Benchmark: CRISIL Hybrid 35+65 – Aggressive Index
– Date of allotment: 3 November 1999
– Risk Level: Very High
– Minimum SIP: Rs 100
– Expense Ratio: 1.58% in Regular Plan, 0.98% in Direct Plan
– Exit Load: No charge on 30% units within first 1 year, 1% charge on redemption of units above that, no charge after 1 year.
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Is this scheme right for you?
ICICI Prudential Equity and Debt Fund has given excellent returns to its investors. This scheme can be a good option for those who want a balanced portfolio of equity and debt for long-term investments. This scheme is suitable for investors who are new to equity investing, as this scheme can give more stable returns compared to pure equity funds due to investment in both equity and debt. However, being an aggressive hybrid scheme, at least 65 percent of its investment is in equity. This is the reason why it is kept in the ‘very high’ risk category. This means that investors investing money in the scheme will have to be prepared to take risk to get higher returns. Also, you will get the benefit of investing in this fund only if you invest for a long period. Only those investors who are ready to invest for 5 years or more should invest in this fund. However, it is important to assess your risk appetite before investing. Besides, by investing gradually through SIP, you will also be able to take advantage of rupee cost averaging.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any scheme. The past returns of any equity mutual fund do not guarantee the same performance in the future. Take investment decisions only after taking the advice of your investment advisor. .)
