ICICI Pru Balanced Fund: A safe bet amid market volatility

In the past one year, balanced schemes have been able to beat large-cap schemes by a fairly wide margin. Large-cap schemes have delivered returns of -1.8%, while balanced schemes have given close to 3% returns in the past one year. This outperformance is because of the very nature of balanced schemes where re-balancing of portfolio in equity and debt assets enhance the scope of securing superior returns. Given high volatility in markets, it makes sense to invest in balanced schemes.

Among the balanced schemes, ICICI Pru Balanced scheme is one of the best performing schemes. It has consistently delivered, especially considering a longer time frame of five years. In the past five years, the scheme has given 15.2% returns, while the balanced fund category has given 11.5% returns in the same period.



There are two factors which have worked for the scheme. First, on the equity side, the scheme’s fund manager Sankaran Naren invests in companies with a minimum investment horizon of three years.

This means that the fund manager invests in theme which will play out in the long term. Second, on the debt side, the scheme’s fund manager Manish Banthia has also maintained balance of duration across debt instruments right from government bonds to corporate. Largely, they have long-term maturity period. In times of falling interest rates, this strategy works out well as it makes bond prices attractive.