This New Mutual Fund Aims to Balance Equity, Debt and Precious Metals; Check Details

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Multi-Asset Active Fund of Funds (FOF), an open-ended scheme that aims to provide investors with a diversified investment solution by allocating assets across active equity-oriented schemes, active debt-oriented schemes, and Gold ETFs/Silver ETFs. The New Fund Offer (NFO) will open for subscription on June 30, 2026, and close on July 14, 2026. The fund seeks to participate in growth opportunities while providing diversification across changing market cycles through active asset allocation.

Dynamic Multi-Asset Investment Strategy

The scheme will actively manage its allocation across equity, debt, gold and silver based on ICICI Prudential AMC's proprietary valuation framework, prevailing market conditions and macroeconomic environment. Instead of maintaining a fixed allocation, the portfolio will dynamically adjust exposure depending on the relative attractiveness of each asset class, to deliver a more balanced investment experience across different market environments. Investors who remain invested in the scheme for 24 months or more will also qualify for Long-Term Capital Gains (LTCG) Tax treatment, as applicable.

Designed for Different Market Cycles

According to the fund house, no single asset class consistently outperforms across all market cycles. Equity, debt, gold and silver each perform differently depending on factors such as economic growth, inflation, interest rates and market sentiment. The new scheme is designed to capture opportunities across these asset classes by combining equity for long-term wealth creation, debt for relatively stable accrual income, and gold and silver for portfolio diversification and potential protection against inflation and geopolitical uncertainty.

Flexible Asset Allocation Framework

Under its investment strategy, the scheme will allocate 30 to 80 per cent of its portfolio to active equity-oriented schemes, 10 to 60 per cent to active debt-oriented schemes, and 10 to 30 per cent to Gold ETFs and/or Silver ETFs. The allocation will remain flexible and will be actively managed as market conditions evolve. The AMC also stated that, under the current market environment, exposure towards Gold ETFs will initially be restricted to 5 per cent of the scheme's assets under management, with the allocation being reviewed periodically.
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Different Asset Classes, Different Returns

The rationale for a multi-asset strategy is also evident from the performance of different asset classes in 2025. During the year, the BSE Sensex delivered a return of 13.5 per cent, while the CRISIL Composite Bond Fund Index generated 6.9 per cent and gold returned 74.7 per cent, significantly outperforming both equities and bonds.

Management Commentary

Commenting on the launch, Sankaran Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, said that disciplined asset allocation is one of the most important drivers of long-term investment success because different asset classes perform differently across economic and market cycles. He added that the Multi-Asset Active FOF combines active equity, debt and Gold/Silver ETFs within a single portfolio while leveraging the AMC's proprietary valuation and macroeconomic models to actively rebalance allocations as market conditions evolve. According to him, the objective is to offer investors a structured, research-driven investment solution that provides a more consistent investing experience over the long term.

Key Features of the Scheme

The scheme has a minimum investment amount of Rs 1,000 and will be available under both Direct Plan and Regular Plan options. Its benchmark comprises 55 per cent Nifty 200 TRI, 35 per cent NIFTY Composite Debt Index, 7 per cent Domestic Price of Gold and 3 per cent Domestic Price of Silver. The fund will be managed by Dharmesh Kakkad, Manish Banthia, Akhil Kakkar, Sharmila D'Silva and Gaurav Chikane.

About ICICI Prudential Mutual Fund

ICICI Prudential Mutual Fund is one of India's leading asset management companies, offering a broad range of equity, debt, hybrid, passive and solution-oriented investment products. Through its research-driven investment approach and diversified product offerings, the fund house aims to help investors build long-term wealth while managing risk across different market conditions.

Disclaimer: The article is for informational purposes only and not investment advice.