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Ever since the conflict between Iran and the US began, stock markets across the globe have been experiencing volatility. India's stock market has not remained unaffected by this either. Amidst this market turbulence, we are going to tell you about a fund that has delivered strong returns to investors during this challenging period.

In order to better align with changing market conditions and the evolving needs of investors, ICICI Prudential Mutual Fund has revamped its existing fund—the ICICI Prudential Thematic Advantage Fund of Funds—relaunching it as the ICICI Prudential Aggressive Hybrid Active Fund of Funds.

**How ​​It Delivered a 15% Return**

Effective April 1, 2026, this fund will invest 65–80% of its assets in equity schemes and 20–35% in debt schemes, in accordance with the Securities and Exchange Board of India's (SEBI) 2025 'Fund of Funds' regulations. This structural change enhances stability while simultaneously preserving the flexibility to make strategic investments in equities, including the small-cap and mid-cap segments. A lump-sum investment of ₹1 lakh, made at the fund's inception on December 18, 2003, had grown to approximately ₹20.34 lakh by March 31, 2026—reflecting a Compound Annual Growth Rate (CAGR) of 14.47%. Over the last three and five years, the fund has delivered returns at a CAGR of 15.1% and 14.9%, respectively. It has outperformed its benchmark, the Nifty-200 TRI, which yielded returns of 12.6% and 11.4% over the same periods.

**SIP: A Reliable Companion Even During Market Downturns**

This strategy also demonstrates stability for investors utilizing the Systematic Investment Plan (SIP) route. Over the past 10 years, a monthly SIP of ₹1,000 has grown in value to ₹21 lakh, against a total actual investment of just ₹12 lakh. This translates to a return generated at a CAGR of approximately 11%. Over periods of five and seven years, the returns on SIPs have stood at 9.4% and 9.8%, respectively. The top five holdings—which collectively account for approximately 35% of the fund's portfolio—include the ICICI Prudential Value Fund (11%), ICICI Prudential Large & Mid Cap Fund (6.5%), ICICI Prudential Focused Equity Fund (6.4%), ICICI Prudential Banking & Financial Services Fund (5.6%), and ICICI Prudential Technology Fund (5.4%).

**Investment Focus: These Sectors**

This strategy is grounded in a unique approach that combines thematic investing with active asset allocation. Unlike traditional hybrid funds—which invest directly in stocks and bonds—this fund adopts a 'Fund-of-Funds' structure, allocating capital to a select group of actively managed equity and debt schemes. This approach facilitates diversification across various sectors, market capitalizations, and investment styles, while also leveraging the expertise of multiple fund managers. The portfolio is designed to capitalize on opportunities that emerge throughout economic cycles. It maintains investments in structural growth sectors—such as technology, financial services, healthcare, consumption, and energy—areas that periodically assume a leading role in the market. Additionally, investments in debt-oriented funds provide a balancing element, thereby aiding in risk management during periods of market uncertainty.

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