If you are planning to invest in a new mutual fund, here’s an option to consider.
ICICI Prudential Mutual Fund has launched the ICICI Prudential Multi-Asset Active Fund of Funds (FOF), a new fund offering (NFO) that allows investors to invest in multiple asset classes through a single scheme.
The NFO is currently open for subscription and will remain available until July 14. Investors can start investing with just ₹1,000.
What Is This New Fund?
The ICICI Prudential Multi-Asset Active FOF is an open-ended fund of funds.
Instead of investing directly in stocks or bonds, it invests in other mutual fund schemes.
The fund mainly invests in:
Active equity-oriented mutual funds
Active debt-oriented mutual funds
Gold ETFs and Silver ETFs
The fund will adjust its investments across these asset classes depending on market conditions, valuations, and economic trends.
Why Has This Fund Been Launched?
According to S. Naren, Executive Director and Chief Investment Officer (CIO) of ICICI Prudential Asset Management Company, different asset classes perform differently during different market cycles.
The aim of this fund is to actively shift investments between equity, debt, gold, and silver based on research, valuation models, and macroeconomic conditions.
This approach is designed to help investors benefit from opportunities across different markets while reducing the impact of market volatility.
How Will the Money Be Invested?
The fund follows a diversified investment strategy with the following allocation:
30% to 80% in active equity-oriented schemes.
10% to 60% in active debt-oriented schemes.
10% to 30% in Gold ETFs and/or Silver ETFs.
The allocation may change over time depending on market conditions.
What Are the Key Benefits?
The fund aims to provide diversification by combining multiple asset classes in one portfolio.
Its investment strategy focuses on:
Equity for long-term wealth creation.
Debt funds for relatively stable income.
Gold and silver for diversification and protection against inflation.
This means investors do not have to manage separate investments in different asset classes on their own.
Minimum Investment and Fund Managers
The minimum investment amount is ₹1,000.
After that, investments can be made in multiples of ₹1,000. Both Direct and Regular plan options are available.
The fund will be managed by Dharmesh Kakkar, Manish Banthia, Akhil Kakkar, Sharmila D’Silva, and Gaurav Chikne.
Its benchmark is a combination of 55% Nifty 200 TRI, 35% Nifty Composite Debt Index, 7% domestic gold prices, and 3% domestic silver prices.
