ICICI Prudential Equity & Debt Fund: Rs 10,000 SIP Grows to Over Rs 3 Crore in 25 Years
ICICI Prudential Equity & Debt Fund, an aggressive hybrid mutual fund that invests mainly in stocks, recently marked its 25th anniversary on November 3. This fund also keeps a portion of its investments in debt instruments to balance risk and returns.
Since its launch on November 3, 1999, the fund has achieved an average annual return (CAGR) of 15.52%. Over the past 20 years, it delivered a CAGR of 16.54%, and in the last 10 years, it provided a CAGR of 15.57%, showing consistent growth for long-term investors.
This fund has yielded impressive results for those investing regularly through SIPs. A monthly SIP of Rs 10,000 over 25 years would have grown to Rs 3.63 crore with an XIRR of 16.75%. Over 20 years, the same monthly SIP would have grown to Rs 1.51 crore with an XIRR of 16.15%.
If one had invested a lump sum amount of Rs 1 lakh when the fund launched, it would now be worth Rs 36.96 lakh, with a CAGR of 15.52%. For a Rs 1 lakh investment made 20 years ago, the value today would be Rs 21.41 lakh, with a CAGR of 16.54%.
The fund’s performance over the past 10 years shows only one negative year in 2018. In comparison to its benchmark, the scheme underperformed in 2015, 2018, 2019, and 2020.
The fund’s portfolio is diversified across 82 stocks. As of September 2024, the fund’s assets under management (AUM) stood at Rs 41,395 crore. Managed by an experienced team, the fund aims for long-term capital growth while also providing current income.
The fund maintains a balanced approach with 65-80% of its assets in equities, 20-35% in debt and money market instruments, and up to 10% each in REITs, InvITs, and preference shares. The minimum initial investment is Rs 5,000, with additional investments in multiples of Re 1.
This 25-year track record shows that ICICI Prudential Equity & Debt Fund could be a solid choice for long-term investors, especially those who prefer a regular SIP approach to grow their wealth steadily.
