A fund that yields a triple return than FD, the risk is also much lower than the stock market which doubles the money every 6 years

New Delhi. Those who invest in mutual funds and the stock market only intend to achieve a high return. Each investor invests his money after carefully thinking about it, but due to the lack of the right option, the desired result is often not achievable. However, if you are looking for an option that is safe and offers good returns, the ICICI Prudential Balanced Advantage Fund can fulfill that search. This fund has achieved a triple return compared to FD. This fund has doubled investors’ money in an average of 6 years.

The ICICI Prudential Balanced Advantage Fund (BAF) is a best-in-class fund with a track record of consistent performance spanning over 16 years. This fund has an intelligent mix of equities, bonds and derivatives (for hedging) which reduces risk and generates stable returns. If you look at the 10-year return, it’s 13.5 percent. A balanced fund means it has less risk but more return than debt. SIP in this category has returned 11.95% over the past 10 years.

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How much return in 3 years
If you get a bank FD with a term of three years, you will earn an average return of 6%. On the other hand, if we look at the Balanced Advantage Fund’s returns, it has returned 18% in three years to June 15, 2023. If you look at the 5-year return, you have 11 percent. Looking at returns across the category, 14.8 percent returns were achieved in 3 years, while 8.6 percent returns were achieved in 5 years. The CRISIL Hybrid Index has also returned 15.6% in three years and 11% in five years.

This is how you achieve strong returns
If we talk about the good returns of the Balanced Advantage Fund, then this is only possible if great caution is exercised when investing in stocks. Investing in stocks is made only when stocks are cheap and sold when they are expensive. During the corona epidemic, the number of Sensex fell by around 50 percent to around 29,000. Since then, this fund has increased its equity share to 73.7 percent. After that, the market started to rise and in November 2022, when the Sensex rose to 60,000, the fund reduced the equity investment to 30 percent. Currently the equity holding is 39.7% until May.

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values ​​justice more
This fund has achieved high returns at low costs and the main reason for this is the increase in equity exposure. The biggest secret of this fund’s success is that when the market is down it reduces its equity exposure to 30%, while when the market is good the equity exposure increases to 65%.

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