ICICI Pru Balanced advantage fund sharply rose its allocation to equity
Mumbai: To begin with, the ICICI Pru Mutual Fund has surged its allocation to equity in its balanced advantage fund to 70.4%. So then, this seemed to exist as the highest since April 2016. Besides, the markets have plunged sharply on the outbreak of the Corona Virus. However, as of Feb 28, the equity allocation stood at 58.5%. Whereas in Jan, it remained 49.67%.
Besides, the advantage fund manages the assets worth Rs 28,092 crores as of Feb 2020. Also, those balanced advantage funds that carry lower volatility compared to pure equity products, alter. So then, they would alter their equity allocation between 30% and 80%. Also, this depends on the market valuation measured by the Price to Earnings (P/E) ratio.
Despite this, when the valuation stands high, they reduce their equity allocation. And when low, they increase it. Hence, these funds have remained popular amongst retail investors in the current times. Because of its inbuilt flexibility to move between equity and debt, this fund remained popular.
Moreover, ICICI Prudential Balanced Advantage Fund since March 2010, has delivered 10.4% returns Vs 8.0% of the Nifty 50 Index. Also, the scheme has seemed to manage to do so with average equity allocations close to 55%.