ICICI Prudential MF Launches Diversified Equity All Cap Active Fund of Funds; NFO Open Till March 16

ICICI Prudential Mutual Fund has launched the ICICI Prudential Diversified Equity All Cap Active Fund of Funds (FOF), an open-ended scheme designed to invest predominantly in diversified domestic active equity-oriented schemes across market capitalisations. The new fund offer (NFO) opened on March 2 and will close on March 16, 2026.

Scheme Structure and Benchmark

The fund will invest in a curated portfolio of active equity mutual fund schemes spanning large-cap, mid-cap, and small-cap categories. By adopting a fund-of-funds structure, the scheme aims to provide diversification across market segments and investment styles.

The scheme will be benchmarked against the Nifty 500 TRI, which represents a broad cross-section of the Indian equity market.

Dynamic Allocation Strategy

According to the fund house, the scheme follows a structured and dynamic allocation framework. It is designed to adjust exposure across large-cap, mid-cap, and small-cap strategies based on changing market conditions.

Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management Company, stated that different market segments tend to move through cycles of outperformance and correction. The fund seeks to respond to these shifts through a disciplined allocation process rather than relying solely on recent trends.

Investment Approach and Framework

As per the Scheme Information Document (SID), the investment process follows a top-down framework. It evaluates macroeconomic indicators such as growth trends, inflation, interest rate cycles, domestic demand conditions, and global developments. Based on this analysis, the relative attractiveness of different market-cap segments is assessed.

The internal framework also considers valuation metrics such as price-to-earnings and price-to-book ratios. Portfolio allocation may be reviewed periodically in line with the scheme’s objectives.

The scheme will be managed by Dharmesh Kakkad and Sharmila D’silva.

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Conclusion

With its diversified and dynamically managed approach, the ICICI Prudential Diversified Equity All Cap Active FOF aims to offer investors structured exposure across market capitalisations while adapting to evolving market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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 scheme-related documents carefully.