Fund of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
The ICICI Prudential Balanced Advantage Fund Direct Growth is a standout example of a Balanced Advantage Fund (BAF), which dynamically adjusts its exposure between equities and fixed income based on market conditions. This flexibility helps investors navigate market volatility while aiming for capital appreciation. With volatility being a frequent concern in today’s market, BAFs like this one provide an efficient solution by mitigating risks while targeting consistent returns.

In terms of performance, the fund has consistently outpaced its category average across various timeframes. Over the past year, the fund delivered a return of 10.53 per cent, significantly surpassing the category average of 4.05 per cent. Over the last five years, the fund’s return stands at 13.08 per cent, compared to the category’s 10.91 per cent. Even over the last ten years, the fund’s return of 11.65 per cent exceeded the category’s 9.96 per cent, showcasing its consistent ability to generate value for investors.

The fund’s sectoral allocation is well-diversified across key sectors of the Indian economy. The financial sector makes up 15.59 per cent of the portfolio, with a focus on high-quality financial institutions such as ICICI Bank. The automobile sector is another strong area, comprising 9.86 per cent of the portfolio, reflecting the fund’s belief in its cyclical growth potential. Additionally, the fund has 7.01 per cent allocated to the technology sector, known for its strong growth prospects. In terms of risk and return metrics, the fund shows notable efficiency. It has a standard deviation of 5.46, indicating lower volatility compared to its peers. With a Sharpe ratio of 1.19 and a Sortino ratio of 1.76, the fund excels in generating high returns relative to the risk it takes.

The fund is a strong choice for long-term wealth building, offering a blend of strong returns and effective risk management.

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

[EasyDNNnews:UnPaidContentEnd]