2024-08-18 06:25:30
Mumbai: Everyone wants good returns on their savings or investments. But they want to take the least risk. For such investors, asset allocator fund is available in mutual funds. In this, along with stocks, investment is also made in bonds and gold. Therefore, the risk is reduced as compared to equity. Today we are discussing one such mutual fund, which has given a return of 12.30 percent at the rate of compound interest in the last 21 years. This is ICICI Prudential Asset Allocator Fund.
One lakh made more than 11 lakh
If a person had invested Rs 1 lakh in this fund in the year 2003, then his amount would have become Rs 11.13 lakh as of today. That is, he has received a return at the rate of 12.39 percent compound interest per annum. This fund has turned Rs 10,000 into Rs 14,819 in one year. In five years, this amount has become Rs 19,971.
You get the benefit of equity, debt and gold
ICICI Prudential Asset Allocator Fund leverages the strengths of equity, debt and gold. Its disciplined and process-driven approach to asset allocation, coupled with active management and regular rebalancing make it an attractive option for investors seeking long-term wealth creation. The tax-friendly structure, clear exit load policy and professional management make it even more attractive, providing a smooth and hassle-free investment experience. ICICI Prudential Asset Allocator Fund invests dynamically across equity, debt and gold and uses in-house valuation models to optimize returns and reduce emotional bias.
Long term tax benefits in just two years
Until Budget 2024, long-term and short-term gains were taxed as per the investors’ tax slab. However, under the new taxation rules, while short-term capital gains are taxed at a rate of 20 per cent, long-term capital gains are now taxed at a fixed rate of 12.5%. With non-debt investments ranging from 35% to 100%, the fund aims to provide tax benefits while strategically allocating assets for better results. Investors can benefit from this rate by holding the fund for at least 24 months, thus optimising their after-tax returns.
What’s in the exit?
The fund also offers a clear and transparent exit load structure. If units purchased or switched from another scheme are redeemed or switched within one year from the date of allotment, up to 30% of the units can be exited without any charges. This facility ensures that investors can exit a part of their investment without any charges in case of an emergency, thereby providing protection and flexibility to potential investors.