EVERY THING YOU NEED TO KNOW ABOUT ICICI BALANCED ADVANTAGE FUND
It is one of the best hybrid funds in the market that has a dynamic allocation in equity and debt funds.
The percentage of equity and debt funds is decided by the fund manager.
Investors often switch to equity when the market seems favourable and to debt when the market is collapsing, however, this is not that much easy as it sounds, acquiring equity when stocks price declining by 20-30%is good that may be beneficial when it regains its hike, but to some extent knowing there is a risk since its declining gradually make confusion and sometimes investor lose good stock credits.
So to manage this much trouble for investors ICICI bank started a mutual fund scheme ICICI BALANCED ADVANTAGE FUNDon 30th December 2006.
It’s one of the hybrid funds that have investments in more than one asset, equity (buying shares) and debt fund(fixed income source). More often some schemes have a direct plan and fixed percentage for both in that case they face losses when nifty decline. In ICICI BALANCED ADVANTAGE FUNDthe fund manager will automatically manage the percentage of equity and debt profitable as per the ongoing scenario. Equity may have 60-80% allocation if the market is at a peak and 40-20% will go for debt and if the market is retarding equity will share 30% allocation and the rest for debt, therefore this scheme is dynamic and adjustable and less uncertain since it follows ridges and trough according to market values.
Its price-book value is less volatile as compared to the price-earnings ratio. Since price value is market dependent and book value is a balance sheet the company have made for its shareholders.
Some important aspects of ICICI BALANCED ADVANTAGE FUND (as of 2021)
• Expense ratio-1.74%
• Last 1 year return-32.76%
5 year-11.68%
10 year-12.25%
• Long-term capital gain-when invested for more than 1 year
• Short-term capital gain-when invested for up to 1 year
• Exit load-1% (in LTCG is withdrawn before 1 year, tax of 1% is payable and after 1 year no tax is applicable)
• They sell stocks when the market is high and buy stocks when the market is low.
• Daily rebalance their portfolio.
• Their asset allocations are
Liquid equity-32%
Domestic eq-40%
Fixed eq-28%
• Sectoral allocations
Financial-32.4%
Defence-28%
Sensitive-31%
• Maximum investments in large capital companies and some to the medium cap. Companies
• AUM size-36000+ cr
Moreover, it’s the best investment plan for new investors and low-risk holders since more allocations in debt here.
If you know about SBI Focused Equity Fund’s regular growth. Do read this topic- SBI Focused Equity Fund’s regular growth
From Hemant K Midha