Upcoming NFO: ICICI Prudential Mutual Fund Files Draft for Diversified Equity All Cap Active FoF

ICICI Prudential Mutual Fund has filed the draft scheme information document for the ICICI Prudential Diversified Equity All Cap Active Fund of Funds. The proposed scheme is an open-ended fund of funds that will invest mainly in domestic active equity schemes across different market capitalisation segments.  

The scheme will be benchmarked against the Nifty 500 Total Return Index. Units will be offered at a face value of ₹10 during the new fund offer, after which the scheme will reopen for continuous purchases and redemptions at NAV-based prices.  

Asset Allocation 

Under normal conditions, the scheme will invest 95% to 100% of its assets in units of diversified domestic active equity-oriented schemes. These may include large-cap, flexi-cap, multi-cap, mid-cap, small-cap and focused funds.  

Up to 5% of the corpus may be held in liquid or overnight schemes and money market instruments with maturities of up to 91 days. This portion is intended to meet liquidity requirements and operational needs.  

Investment Approach 

The scheme will follow an active selection process while choosing the underlying equity funds. Factors such as growth prospects, valuation levels, market cycles, liquidity conditions and macroeconomic trends may be considered during allocation decisions.  

The scheme will not directly invest in equities, derivatives, overseas securities, REITs or InvITs, as per the draft document.  

Investment and Exit Terms 

The minimum application amount during the new fund offer and the ongoing period is ₹100, with additional investments also starting from ₹100. Redemptions can be made on any business day at applicable NAV-based prices.  

An exit load of 1% will apply if units are redeemed within one year from the date of allotment. No exit load will be charged after one year.  

Expenses and Plans 

The scheme will offer Direct and Regular plans, each with a growth option. The total expense ratio, including the weighted average expenses of underlying schemes, is capped at 2.25% of daily net assets.  

Investors in the scheme will bear expenses at both the fund-of-funds level and the underlying scheme level.  

Read More: NFO Alert: UTI Mutual Fund Launches Nifty500 Shariah Index Fund! 

Conclusion 

The proposed scheme will allocate most of its assets to domestic active equity schemes across market-cap segments. As a new offering, it does not have a performance histor 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.