The article compares two popular Multi-Asset Allocation Funds, Quant Multi-Asset Fund and ICICI Pru Multi-Asset Fund, in terms of their investment style, philosophy, and performance. Both funds are open-ended schemes that aim to generate capital appreciation by investing in a mix of equity, debt, and commodity instruments.
The Quant Multi-Asset Fund has a more aggressive approach, with a focus on identifying cross-asset and cross-market inflexion points using its proprietary VLRT framework. It has a relatively higher allocation to well-established players like Reliance Industries and Larsen & Toubro, indicating a preference for growth-oriented companies.
On the other hand, the ICICI Pru Multi-Asset Fund adopts a more balanced approach, with a top-down evaluation of sectors and a dynamic management of equity and debt allocation. Its top holdings include ICICI Bank and Maruti Suzuki, and it has a greater allocation to Treasury Bills and Government securities, offering stability.
The expense ratios of the two funds are similar, with the direct plan of Quant Multi-Asset Fund slightly higher than the regular plan of ICICI Pru Multi-Asset Fund. However, expense ratios alone are not the only consideration, and investors should evaluate other metrics such as risk-adjusted returns, asset allocation strategy, and investment processes.
The article suggests that the Quant Multi-Asset Fund may be suitable for aggressive investors seeking high growth and diversification, while the ICICI Pru Multi-Asset Fund may be ideal for moderate investors aiming for steady long-term growth with lower volatility. Ultimately, the choice between these two funds depends on individual financial goals and risk tolerance.