If you want to invest in a balanced fund that spreads your risk and still gives you good returns, then you might have come across the ICICI Prudential Multi-Asset Fund. But is it the right place to invest your money?
Let’s discuss the ICICI Prudential Multi-Asset Fund benefits and risks in simple form, so that you can make a better decision on Should You Invest in ICICI Prudential Multi‑Asset Fund for your financial goal.
What is ICICI Prudential Multi-Asset Fund?
The ICICI Prudential Multi-Asset Fund is a mutual fund that invests your money in a mix of holdings like equity, bonds, and even gold and silver.
This mix helps you reduce risk because not all assets move up or down at the same time. It is managed by ICICI Prudential Asset Management, which is one of India’s most trusted mutual fund companies.
The fund’s goal is to give stable returns over the long-term and the fund manager adjusts where the money goes, which depends on market performance. So, it is flexible and actively managed.
Pros of Investing in ICICI Prudential Multi-Asset Fund
Let us look at the ICICI Prudential Multi-Asset Fund benefits that draw the attention of many investors:
1. Diversified Portfolio means Lower Risk
Your money is not just invested in one type of stock. It is also mixed with bonds and gold. So, if the share of one market falls, the other can balance the loss and this gives your overall investment more stability and lower your overall risk.
2. Expert Management
The fund is actively managed by a professional called fund manager. Like Sanakran Naren, a well-known name in the mutual fund world. Your returns and benefits depend upon their experience and market knowledge.
3. Better Balance of Risk and Returns
Because the fund is diversified in different types of assets, it usually manages the market ups and downs better than the pure equity funds. This means more steady returns with lower risk.
4. SIP-Friendly
You don’t need a lot of money to start your investment in this fund. You can start a SIP in this fund with just ₹100 per month, which is very low. SIPs help you create wealth while handling market ups and downs effortlessly.
5. Tax Benefits
If the fund holds more than 65% of its money in equity, it gets taxed like an equity fund. That means if you stay invested for over a year, then long-term capital gains above ₹1 lakh are taxed at 10%. You can save more tax in this fund as compared to debt funds.
Cons of Investing in ICICI Prudential Multi-Asset Fund
Even good investment options have some drawbacks. Here are a few ICICI Prudential Multi-Asset Fund risks to be aware of:
1. Not Completely Safe
As you know, diversification of assets lowers the risk, but can’t remove it. If stock markets fall suddenly, then your fund’s value can still go down.
2. Fund Manager’s Decision Matter
Since the fund is actively managed by your manager, your returns also depend on the fund manager’s calls. If they make weak decisions, then your returns might suffer a lot.
3. Higher Expense Ratio
Because this fund is actively managed, it charges more expense ratio than simple index funds. Over time, this can slightly decrease your returns overall.
4. May Underperform in Bull Markets
During times when markets are booming, pure equity funds often give better returns. So, if you are seeking high growth, then this fund might not keep up with the market.
5. Commodity Price Fluctuation
Because some part of the fund is in gold and silver. These prices can go up or down quickly. This adds a little extra volatility to your investment.
Who Should Invest in ICICI Prudential Multi-Asset Fund?
This fund is best known for people who are looking to balance their portfolio, which is not too risky, not too safe. It suits:
Beginner investors who want diversification.
Those who can handle moderate risk during market volatility.
Investors planning for medium to long-term financial goals.
People who favor professional management and regular monitoring.
However, if you are someone who wants faster, higher returns and doesn’t mind taking a few risks, pure equity funds may suit you the best.
ICICI Prudential Multi-Asset Fund Past performance
As of July 2025, the fund has delivered average returns of about 24 to 25% annualised over the last 5 years, which is a good return, especially considering the lower risk as compared to pure equity funds.
But always remember that past returns don’t confirm future results. They just give an idea of how consistent the fund has been.
How to Invest in ICICI Prudential Multi-Asset Fund
You can invest smoothly through:
The official ICICI Prudential AMC website.
Online platforms like Groww, Zerodha, Paytm Money, etc.
Offline, through certified mutual fund agents or suppliers.
Before you start investing, make sure to check the latest ICICI Prudential Multi-Asset Fund NAV, expense ratio, and the minimum investment amount.
Final Thoughts
The ICICI Prudential Multi-Asset Fund is a smart choice if you prefer a steady growth without taking too much market risk. It gives you diversification across different assets, expert fund management, tax efficiency, and flexibility to start with low SIP amounts.
Just male sure that the fund fits your financial goals and you are okay with taking some risks. It is not for people who are looking for quick returns or very high growth.
FAQs
Is ICICI Prudential Multi-Asset Fund good for beginners?
Yes, it is beginner-friendly because it balances out your risk through diversification.
What is the minimum SIP amount for ICICI Prudential Multi-Asset Fund?
You can just start with the minimum amount of ₹100 per month.
How much return can I expect from ICICI Prudential Multi-Asset Fund?
According to the past performance, it has given 12 to 14% per year over 5 years, but the future returns may vary.
Is ICICI Prudential Multi-Asset Fund tax-free?
No, it is not tax-free but long-term gains above ₹1 lakh are taxed at 10%.
Can I withdraw anytime from ICICI Prudential Multi-Asset Fund?
Yes, you can withdraw anytime. But make sure to check the fund’s exit load if you withdraw early.