NFO Alert: ICICI Prudential Mutual Fund Launches Multi-Asset Active FoF

ICICI Prudential Mutual Fund has introduced the ICICI Pru Multi-Asset Active FoF, an open-ended fund of funds that will invest in active equity mutual funds, debt mutual funds, Gold ETFs and Silver ETFs.  

The scheme does not invest directly in stocks or bonds. Instead, it holds units of existing mutual fund schemes and exchange-traded funds, giving investors exposure to multiple asset classes through a single portfolio. 

Allocation to Vary Within Set Limits 

The scheme has a defined allocation range for each asset class. Investments in active equity-oriented schemes can range from 30% to 80%, while active debt-oriented schemes can account for 10% to 60% of the portfolio. Exposure to Gold ETFs and Silver ETFs together will remain between 10% and 30%. 

The allocation will not remain constant throughout the tenure of the scheme. Changes will be made after considering market valuations, macroeconomic indicators, and broader economic conditions. 

Gold Exposure Restricted for Now 

Although the investment mandate permits a higher allocation to precious metals, the fund's house has decided to limit Gold ETF exposure to 5% of the scheme's assets under management (AUM) in the current market environment.  

The allocation may be reviewed and revised at a later stage, depending on market conditions. Silver ETFs will continue to form part of the permitted allocation to precious metals within the overall limits specified in the scheme. 

Asset Allocation Strategy 

According to Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC, different asset classes tend to perform differently during various phases of economic and market cycles.  

He said the scheme uses proprietary valuation and macroeconomic models to determine allocations across equity, debt, and precious metals. 

The investment process is designed to adjust the portfolio over time rather than maintaining a fixed exposure to any single asset class. 

Read More: Mutual Funds Complete Exit from 6 Stocks Including Raymond Realty in May 2026! 

Conclusion 

The ICICI Pru Multi-Asset Active FoF will invest across equity, debt, Gold ETFs and Silver ETFs through underlying schemes. Portfolio allocations will be revised within the prescribed limits based on market conditions and macroeconomic developments. 

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.