NFO Alert: ICICI Prudential Launches New Quality Fund

ICICI Prudential Mutual Fund has introduced the ICICI Prudential Quality Fund, a sectoral/thematic equity scheme following a Quality Factor investment approach. The fund’s New Fund Offer (NFO) is open from May 6, 2025, to May 20, 2025, with allotment scheduled for May 28, 2025.

Scheme Objective and Structure

The primary goal of the fund is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies identified using the Quality Factor. This includes companies with high return on equity, stable cash flows, low financial leverage, and consistent capital allocation.

The fund will follow a flexible investment style, combining macroeconomic and sector-level assessments with individual stock research. It will invest across sectors and market capitalisations. The stock selection process will begin with a universe of about 625 companies, filtered down to a portfolio of 40–60 companies based on quality and valuation criteria.

Performance Data 

Data from NSE Indices (as of March 31, 2025) shows the quality investment style has historically delivered an average return of 17.4% on a five-year daily rolling basis. The risk-adjusted return ratio was 3.3 during this period. An investment of ₹1 lakh in April 2005 in the Quality Index would have grown to ₹26.8 lakh by March 2025, compared to ₹14.5 lakh in the Nifty 200 TRI over the same time frame.

Fund Details and Charges

• Minimum Investment: ₹5,000
• Exit Load: 1% if redeemed within 365 days; no exit load after that
• Entry Load: Nil
• Stamp Duty: 0.005% (SEBI-mandated)
• Plans and Options: Available under both Regular and Direct plans; Growth and IDCW options
• Benchmark: Nifty 200 Quality 30 TRI
• Fund Managers: Ihab Dalwai and Masoomi Jhurmarvala

Read More: NFO Alert: Angel One Nifty 50 ETF Opens on 5th May 2025

Conclusion

The ICICI Prudential Quality Fund is structured to follow a factor-based investment strategy focused on quality metrics. It will be available for subscription during the NFO window with standard investment and withdrawal features.

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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.