ICICI Prudential Equity & Debt Fund turns Rs 1,000 SIP to Rs 4 crore in nearly 26 years

ICICI Prudential Equity & Debt Fund turned Rs 1,000 monthly SIP to Rs 4.02 crore in nearly 26 years since its inception with an XIRR of against a total investment of Rs 31.6 lakh as of February 28, 2026.

In the last 15 years, the same SIP amount would have grown to Rs 69.74 lakh with an XIRR of 16.42%. The monthly investment of Rs 1,000 would have grown to 29.28 lakh in 10 years.

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Over shorter periods as well, SIP returns remain robust, delivering a CAGR of 18.15%. and 11.85% across five and three years. Across each of these timeframes, the fund has consistently outperformed its benchmark, the CRISIL Hybrid 35+65 – Aggressive Index, demonstrating the effectiveness of its dynamic equity–debt allocation strategy in generating encouraging risk-adjusted returns, according to a note by the fund house.

A lump sum investment of Rs 1 lakh at the time of inception, as of February 28, 2025, would have grown to approximately Rs 40.70 lakh, reflecting a CAGR of 15.11%. Over three and five year time periods, as well, the fund has delivered a CAGR of 19.5% and 19%. During the same timeframe, its benchmark CRISIL Hybrid 35+65 – Aggressive Index, delivered a CAGR of 14% and 11.75% respectively.

Since its inception, the fund has delivered a return of 15%. In the last five years it posted a return of 19%. In the last three years and one year, the fund delivered a return of 19.5% and 17% respectively.

“Hybrid funds play an important role in helping investors navigate uncertain and evolving market conditions by combining the growth potential of equities with the stability of fixed income. Our approach in this fund is anchored in dynamically balancing equity and debt based on relative valuations, risk-reward, and macroeconomic signals,” said Sankaran Naren, ED & CIO, ICICI Prudential Mutual Fund.

“This flexibility allows us to increase equity exposure when valuations are favourable and moderate risk when markets become expensive or volatile. Over time, this disciplined asset allocation framework, combined with a diversified portfolio has helped the fund deliver consistent outcomes across cycles. We believe such a balanced approach is well suited for investors seeking long-term wealth creation while managing volatility in their investment journey,” Naren further said.

ICICI Prudential Equity & Debt Fund is an open-ended aggressive hybrid scheme investing predominantly in equity and fixed income securities.

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The fund follows a diversified and flexible investment approach, investing across market capitalisations and sectors. As of February 28, 2026, the scheme had net equity exposure of approximately 76%, with the remaining allocation invested in high-quality fixed income instruments. Within equities, the portfolio is predominantly allocated to large-cap companies, along with selective exposure to mid-cap and small-cap stocks to enhance long-term growth potential.

On the debt side, the fund focuses on high-quality instruments rated AA and above, including corporate bonds, government securities, and other fixed income instruments. This approach helps generate stable accrual income while maintaining portfolio quality and managing downside risk.

Launched on November 3, 1999, the fund typically allocates 65%–80% to equities and 20% 35% to fixed income instruments, enabling investors to participate in equity market growth while benefiting from stability and income provided by debt securities. The hybrid structure allows the fund to dynamically adjust allocation depending on market conditions while maintaining its growth-oriented investment objective.

The fund adopts a combination of top-down and bottom-up investment approaches. Sector allocation decisions are guided by macroeconomic outlook, valuation considerations, and growth potential, while individual stock selection focuses on identifying fundamentally strong companies with sustainable earnings growth and reasonable valuations. This diversified approach enables the fund to capture opportunities across sectors while managing volatility.

ICICI Prudential Equity & Debt Fund is suitable for investors seeking long-term wealth creation with relatively lower volatility than equity funds. It can also be considered by investors looking for balanced exposure to equities and fixed income through a single investment solution, particularly those with an investment horizon of three years or more.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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