This Multi-Asset Fund Can Turn Your Rs 50,000 Diwali Bonus Into Rs 1.52 crore, check details

The festival of Diwali is round the corner and many companies have started paying out the Diwali bonus. If you have already received the Diwali bonus instead of spending it you can choose a good investment instrument to multiply your money.

There are multiple savings instruments and investment avenues available in the market. However, mutual funds remain one of the favourite options among investors as they offer higher return.

The ICICI Prudential Multi-Asset Fund could be a suitable option if you are planning to put your money into different assets without getting directly exposed to the risk of the market volatility.

The multi-asset funds are a class of mutual funds which invest in at least three asset classes. As per the SEBI guidelines, these mutual funds should invest at least 10 in three asset classes. Generally multi asset funds invest in equity, debt and other asset classes like gold or real estate.

The ICICI Prudential Multi-Asset Fund was launched in October 2002 and has completed 21 years now. Its compound annual growth rate (CAGR) stands at 21.02%, which is higher than many other mutual funds in the same category. Its total assets under management (AUM) stand at Rs 24,060 crore.

It is an open-ended scheme that invests in equities, debt, exchange-traded commodities, derivatives/gold units, ETFs, and InvITs.

How much do you need to invest?

You can start investing in ICICI Prudential Multi-Asset Fund with an amount as low as Rs 5,000 as lump sum. You can also start a systematic investment plan (SIP) with a minimum investment of Rs 100 per month.

How much return will you get on an investment of Rs 50,000?

If you invest your Diwali bonus of Rs 50,000 in ICICI Prudential Multi-Asset Fund Growth Plan for 30 years the amount can turn into Rs 1.52 crore considering the 21% annualised return since its inception that the scheme has given on lump sum investment.

In this case, due to the compounding effect, you will get a return of Rs 1.51 crore on the investment of Rs 50,000.

If you choose to lock in your investments for 20 years, then the corpus fund will turn into Rs 22.6 lakh.

Moreover, if you invest the same amount in this scheme for just 10 years, you’ll receive Rs 3.36 lakh.

Therefore, we can rightly conclude that investing for a longer period appears better due to the return on investment. However, it’s important to note that the rate of return can fluctuate depending on market conditions and several other factors.

Also, remember that mutual fund investments are subject to market risks and make an assessment of your risk tolerance before investing your money.