ICICI Prudential Dynamic Asset Allocation Active FOF - Direct Plan - IDCW

ICICI Prudential Dynamic Asset Allocation Active FOF - Direct Plan - IDCW ranks among the stronger performers in the FoF Domestic category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 86/100.

Cost: At 0.39%, the expense ratio runs 105% above the FoF Domestic category average of 0.19%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.63 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 7.5% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Other fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.