Summary of this article
ICICI Prudential's Balanced Hybrid Fund NFO is open until July 14, 2026
The fund will invest 40-60 per cent each in equity and debt
It aims to balance long-term growth with relatively lower volatility through active asset allocation
ICICI Prudential Mutual Fund has launched the ICICI Prudential Balanced Hybrid Fund, an open-ended balanced hybrid scheme that will invest exclusively in equity and debt instruments. The New Fund Offer (NFO) opened on June 30, 2026, and will close on July 14, 2026.
Equity And Debt Allocation To Remain Between 40-60 Per Cent
Under the scheme, the fund manager will maintain a balanced mix of equity and debt, with each asset class accounting for 40-60 per cent of the portfolio. The equity investments are meant to drive long-term growth, while the debt portion is expected to cushion the portfolio during periods of market volatility.
The equity portfolio will include stocks across sectors and companies of different market capitalisations, while the debt portfolio will invest in government securities, AAA-rated bonds and other fixed-income instruments across different maturities and credit categories.
According to the fund house, portfolio allocation between equity and debt will be reviewed periodically based on valuations, earnings trends, bond yields and prevailing market conditions.
Designed To Balance Growth With Stability
Announcing the launch, Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC, said the scheme aims to maintain a balanced allocation between equity and debt depending on market conditions.
"ICICI Prudential Balanced Hybrid Fund is designed to strike a suitable balance between equity and debt allocation, with each receiving an allocation of 40-60 per cent of the portfolio, basis prevailing market conditions. We believe this balanced approach is well placed to navigate the current environment while supporting both income generation and long-term wealth creation for investors."
The fund house said equities have historically generated higher long-term returns despite short-term volatility, while debt investments have typically offered relatively stable returns. Combining the two asset classes in a single portfolio can potentially reduce downside during equity market corrections while improving return potential compared with debt-only portfolios, it added.
How The Scheme Differs From Other Hybrid Funds
The ICICI Prudential Balanced Hybrid Fund will invest 40-60 per cent of its portfolio each in equities and debt, giving both asset classes almost equal importance. It will also not use arbitrage strategies, which involve buying and selling the same stock in different markets to earn small price differences.
This makes it different from aggressive hybrid funds, which invest a larger portion (65-80 per cent) in equities and only 20-35 per cent in debt. On the other hand, conservative hybrid funds invest mostly in debt (75-90 per cent) and keep only 10-25 per cent in equities.
As a result, balanced hybrid mutual funds are designed to offer a middle path between the higher growth potential of aggressive hybrid funds and the relatively lower-risk approach of conservative hybrid funds.
Investment Approach And Key Details
The equity portfolio will be built using a combination of top-down and bottom-up research, taking into account macroeconomic factors such as gross domestic product (GDP) growth, inflation, interest rates and currency movements, alongside company fundamentals including profitability, cash flows and competitive advantages.
On the debt side, the fund will invest across the credit and duration spectrum based on interest rate expectations, credit spreads and the broader economic outlook, while following a structured credit evaluation process.
The minimum investment amount is Rs 500, with additional investments in multiples of Re 1. The scheme will be available under Direct and Regular plans and will be benchmarked against the Amfi Tier I CRISIL Hybrid 50+50 - Moderate Index. The fund managers are Roshan Chutkey, Manish Banthia and Akhil Kakkar.
