ICICI multi-asset fund is taxed like Equity funds
ICICI Prudential Mutual Fund is an Open-ended Multi-asset Allocation Hybrid scheme by ICICI Prudential Mutual Fund House. It was launched on 31 October 2002. A multi-asset fund invests money in a mix of equity shares, bonds and commodities which is usually gold.
The objective of the ICICI multi-asset fund is to generate capital appreciation for investors. This can be achieved by investing in equity, equity-related instruments and across other asset classes. This mutual fund is benchmarked against NIFTY Composite Debt Index, London Gold and NIFTY 200 TRI. It was ₹ 13,279 Crore as of 31-May-2022.
The return of this mutual fund since its launch is 20.98%. It is placed very high on Riskometer with an above-average return grade. The turnover is around 48%. The allocation of the asset of the fund is divided in such a way that 61.33% of the asset is in equities, 12.27% in debts and 33.94% in cash and cash equivalents. The top 10 holdings of equity contain 45.36% of the assets. The top 3 sectors i.e. Financial, Energy and communication cover 38.6% of the assets. The Blend oriented style of investing is followed by the ICICI multi-asset fund.
According to it, the fund invests 68.93% in domestic equities. In the domestic equity, around 56.88% of the find is in Large Cap stocks, 4.54% is in Mid Cap stocks and 3.08% in Small Cap stocks. Moreover, the fund has invested around 10.03% in Debt, of which 7.2% is in Government securities and 2.83% is in Low-Risk securities. According to the portfolio allocation, interest rate risk & credit risk is in this fund.
ICICI multi-asset fund is taxed like Equity funds
If the investment is more than 65% in equity and equity-related instruments. If it is less than 65%, then it is taxed like Debt funds. Thus, the taxes will vary according to the asset allocation. If taxed like an equity fund, there is a rate of 15% on profit if redeemed within 1 year of investment. After 1 year of investment, if profit is less than 1 lakh, then no tax and if more than 1 lakh, then there is a tax of 10%. If taxed like a debit fund, if units are redeemed in 3 years, the profit is added to income and taxed accordingly. If redeeming after 3 years, profit will be taxed at 20%.
If you know about ICICI Bluechip Fund. Do read this topic- Public Provident Fund (PPF) Calculator
From Hemant K Midha