This Mutual Fund Has Been Delivering Returns Double That of FDs for 26 Years, Unaffected by Risk..

Regardless of the intensity of market volatility, staying invested in mutual funds over the long term yields substantial returns. The ICICI Prudential Equity and Debt Fund is an open-ended aggressive hybrid scheme that primarily invests in equity and fixed-income securities. Through its diversified portfolio, it effectively navigates and manages market turbulence.

This fund was launched on November 3, 1999, and has since maintained an asset allocation of 65%-80% in equities and 20%-35% in fixed-income instruments. This structure allows investors to participate in the growth of the equity market while simultaneously benefiting from the stability and regular income provided by debt securities. With its hybrid structure, the fund not only delivers attractive returns to investors but also offers stability and protection against market risks.

**When Did Investments in the Fund Begin?**

The fund was launched in 1999, meaning that an investment made approximately 26 years ago has since grown at an impressive rate of over 15%. An initial investment of ₹1 lakh in the fund would have grown to approximately ₹40.70 lakhs by February 28, 2026. This translates to a robust annual return of approximately 15.11% over the entire investment horizon. In other words, over the long term, this fund has delivered average returns that are more than double those offered by Fixed Deposits (FDs).

**Returns Over Three and Five Years**

When examining the fund's investment performance and returns over 3-year and 5-year periods, it has delivered even higher returns compared to its long-term performance. Over the past three years, the fund has generated an annual return of approximately 19.53%, while over the last five years, it has delivered an annual return of 18.87%. In comparison, the benchmark CRISIL Hybrid 35+65 (Aggressive Index) yielded annual returns of 14.12% and 11.75% respectively during the same periods.

AIP Did Not Disappoint Either
Speaking of SIPs, a monthly investment of ₹10,000—initiated at the very inception of the scheme in 1999—has now grown to ₹4.02 crore. Over this period, the actual capital invested amounted to a mere ₹31.6 lakh. Even over shorter time horizons, SIP returns have remained robust, delivering a CAGR of 18.15% and 11.85% over five and three years, respectively. Across all 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.

How ​​Will the Fund Perform Going Forward?
S. Naren, Executive Director at ICICI Prudential Mutual Fund, states that hybrid funds play a pivotal role in helping investors navigate uncertain and shifting market landscapes, as they combine the growth potential of equities with the stability of fixed income. Our approach with this fund is centered on dynamically balancing allocations between equity and debt, guided by relative valuations, risk-reward dynamics, and macroeconomic indicators. This inherent flexibility allows us to increase our equity exposure when valuations are favorable, while enabling us to mitigate risk when the market becomes expensive or volatile.

For Which Investors Is It Best Suited?
The ICICI Prudential Equity & Debt Fund is well-suited for investors seeking long-term wealth creation with relatively lower volatility compared to pure equity funds. It is also an ideal choice for investors looking to gain balanced exposure to both equities and fixed income through a single, unified investment solution—particularly those with an investment horizon of around three years.

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