NFO Alert: ICICI Prudential Mutual Fund Announces Launch of Multi-Asset Active FOF

Investing in mutual funds is one of the most preferred methods for investors in India. Thus, investors remain keen to explore new opportunities to invest in the form of New Fund Offers (NFOs).

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Multi-Asset Active FOF (Fund of Funds), an open-ended scheme. The scheme seeks to adjust exposure across different asset classes based on existing market conditions, valuation signals, and macroeconomic trends. Here are some details related to the new scheme which investors must know before the subscription window opens:

ICICI Prudential Multi-Asset Active FOF: Opening Date

ICICI Prudential Multi-Asset Active FOF will open for subscription on June 30 and remain open till July 14.

ICICI Prudential Multi-Asset Active FOF: Subscription Amount

Investors can subscribe to the NFO with a minimum application amount of Rs. 1,000. The scheme offers both Direct Plan and Regular Plan options.

ICICI Prudential Multi-Asset Active FOF: Objective

The objective of the scheme is to participate in growth opportunities while providing robust portfolio diversification across changing market cycles. The scheme seeks to provide diversification by allocating capital across equity, debt, and commodities.

ICICI Prudential Multi-Asset Active FOF: What Does The Fund Invest In

The portfolio allocation framework of the scheme is structured to invest 30 to 80 per cent in units of active equity schemes for potential long-term wealth creation. Additionally, it will invest 10 to 60 per cent in units of active debt schemes to provide relatively stable accrual income. The fund also allocates 10 to 30 per cent in Gold ETFs and Silver ETFs for inflation protection and diversification.

ICICI Prudential Multi-Asset Active FOF: Management's Commentary

Commenting on the launch, Mr Sankaran Naren, Executive Director and Chief Investment Officer, ICICI Prudential AMC, said that since different asset classes perform differently, the scheme seeks to bring debt, equity and commodity themes under one portfolio.

"Different asset classes perform differently across economic and market cycles, making disciplined asset allocation an important component of long-term investing. ICICI Prudential Multi-Asset Active FOF brings together active equity, debt and Gold ETF/Silver ETF within a single portfolio. The objective is to help investors participate in opportunities across asset classes through a structured and research-driven investment process, thereby creating a more consistent investing experience," Naren said.

ICICI Prudential Multi-Asset Active FOF: Risk Profile and Fund Management

According to the fund's internal assessment and risk-o-meter, the risk of the scheme is categorised as very high. The benchmark tracked by the fund is a composite index comprising 55 per cent Nifty 200 TRI, 35 per cent NIFTY Composite Debt Index, 7 per cent Domestic Price of Gold, and 3 per cent Domestic Price of Silver. The fund will be managed by a team including Dharmesh Kakkad, Manish Banthia, Akhil Kakkar, Sharmila D’silva, and Gaurav Chikane.

ICICI Prudential Multi-Asset Active FOF: Who Is It Ideal For

The ICICI Prudential Multi-Asset Active FOF is ideal for investors seeking long-term wealth creation through a single, research-driven diversified portfolio. The scheme seeks to create wealth by bringing differently performing asset classes under one portfolio as opposed to predicting which asset class will outperform the others next.