ICICI Prudential Multi-Asset Fund Growth INF109K01761

This well-established process has consistently delivered higher returns across various market cycles.

The fund employs a disciplined and active portfolio management strategy, adopting a countercyclical approach when investing in equities. The fund follows a counter-cyclical approach, investing in fundamentally sound companies facing short-term challenges. It dynamically manages equity and debt allocations based on market valuations, maintaining a gross equity level of 65%.

The managers take a top-down view when evaluating sectors, favoring those with attractive fundamentals and avoiding those with stretched valuations, considering factors like fiscal policy, inflation, and government policies. For stock selection, a bottom-up approach identifies companies with sustainable competitive advantages and above-average profitability.

The fund allocates 10%-35% to debt and money market instruments, focusing on safety, liquidity, and returns. When investing in high-yield corporate debt, the emphasis is on companies with strong management, solid track records, and the financial strength of the promoter group.

The strategy’s success hinges on skilled execution, and we believe the fund is well-equipped with the necessary expertise and an experienced team to continue managing it effectively.

The fund's portfolio reflects a countercyclical approach, where managers pick underperforming stocks with strong long-term potential. While the portfolio favors large-cap stocks, it also selectively invests in small and mid-caps, balancing attractive value with risk management. Large-cap picks are actively traded based on relative valuations, while small/mid-cap investments are typically held for longer periods. The fund’s contrarian bets often set it apart from its peers, with a tendency to hold more cash when market valuations seem stretched.

Recently, robust earnings growth in the Indian equity market has led to higher valuations, prompting the manager to reduce the fund’s net equity exposure. Consistent with their contrarian approach, the fund has increased its allocation to quality stocks, which have underperformed in recent years, while booking profits from value-oriented positions. Tactical bets are also part of the strategy, allowing for dynamic adjustments based on market conditions.

On the fixed-income side, the manager prioritizes accrual income over duration, consistently investing in AA rated bonds to enhance returns. On the commodities side, the fund has increased its exposure to gold and silver in early 2023, strategically adjusting positions based on price movements. The fund has since adopted a more neutral stance on gold, while maintaining a positive outlook on silver. Oil positions are actively managed within a defined price range, capitalizing on dips and rallies to optimize returns.