ICICI Pru Balanced advantage fund raises equity allocation to 70.4%, highest since April 2016

MUMBAI: ICICI Prudential Mutual fund has sharply increased its allocation to equity in its balanced advantage fund to 70.4% the highest since April 2016, after markets fell sharply on fears of Corona Virus speading. As of February 28, the equity equity allocation stood at 58.5%, while in January it stood at 49.67% .

ICICI Prudential Balanced Advantage Fund, which manages assets worth Rs 28,092 crore as of February 2020 can vary its equity allocation between 30-80%.

Balanced advantage funds that carry lower volatility compared to pure equity products, typically alter their equity allocation between 30% and 80%, depending on market valuations measured by Price to Earnings (P/E) ratio.


When valuations are high, they reduce their equity allocation and when low, increase it. These funds have been popular among retail investors in recent years because of its inbuilt flexibility to move between equity and debt.

ICICI Prudential Balanced Advantage Fund since March 2010, has delivered 10.4% returns Vs. 8.0% of Nifty 50 Index. The scheme has managed to do so with average equity allocations close to 55%.