ICICI Prudential Mutual Fund launched a new fund offer – ICICI Pru Passive Multi-Asset NFO open for subscription from Dec 27, 2021, up to Jan 10, 2022. The fund is primarily set up to invest in three asset classes, equity, debt, and gold. The fund will adopt different cycles for investment in each asset class across different periods to optimise returns.
Investment objective of the fund
ICICI Pru Passive Multi-Asset is an open-ended Fund of Fund scheme set up with the main objective of fetching returns from investing in Indian and international passively managed funds. This FoF will adopt an investment strategy focused on blending asset classes, including domestic ETFs and index funds, debt ETFs, gold ETFs, and global equity ETFs, along with global index funds. The scheme uses valuation, triggers and technicals to assess investment avenues before establishing a portfolio.
Why should you apply for the NFO?
Exposure to different asset classes: This scheme plans to invest in 3 different asset classes, including equity (both domestic and international), debt and gold. The selection of asset classes for investment will differ across periods to fetch optimal portfolio returns. Here are the broad strategies around asset class selection:
- Domestic equity investment is expected to fetch capital appreciation with a focus on the India growth story.
- Global equity offers diversification and exposure to mega trends.
- With debt investment, the fund is likely to fetch stable returns, thereby balancing risk.
- Gold investments are to be used as a hedge against inflation.
With a diversified portfolio, the fund aims to get high returns in the medium to long term.
Portfolio based on ACTS strategy: The ACTS strategy stands for:
- Allocation – fund allocation of assets across a range of asset classes brings portfolio agility
- Capitalising – fund capitalises on different ETF and index fund themes
- Taxation – adopts a tax-efficient structure such that investors need not worry about timing their investment for tax saves
- Size – investment allocations across asset classes are assigned weights for better distribution and maximising returns
Easy to invest: Investors can invest in this scheme using the SIP mode, starting at only Rs. 100. One can choose between daily, weekly, fortnightly, or monthly SIPs. The scheme comes with the following options:
- Growth option – default
- Income distribution cum capital withdrawal option
- Payout of income distribution cum capital withdrawal
- Reinvestment of income distribution cum capital withdrawal
Performance metrics of some of the multi-asset funds in India: To give an idea about the return expectations from the strategy adopted by the ICICI Pru Passive Multi-Asset FoF scheme, here are the annualised percentage returns generated by some of the top multi-asset funds in India:
| 1-year | 3-year | 5-year | |
| ICICI Prudential Multi-Asset Fund | 34.5% | 18.0% | 15.7% |
| Quant Multi Asset Fund | 57.4% | 30.2% | 18.6% |
| Axis Triple Advantage Fund | 26.2% | 20.2% | 16.0% |
| HDFC Multi-Asset Fund | 21.0% | 17.3% | 12.2% |
| Navi 3 in 1 Fund | 23.6% | 15.5% | 12.0% |
| SBI Multi Asset Allocation Fund | 14.8% | 13.8% | 10.8% |
Fund details
| Scheme name | ICICI Prudential Passive Multi-Asset NFO |
| Type of Scheme | An open-ended fund of fund scheme investing in debt, equity, gold, and global ETFs, index funds. |
| Category of the scheme | Fund of Fund |
| Benchmark with weightage | CRISIL Hybrid 50+50 Moderate index – 80% S&P Global 1200 index – 15% Domestic Gold price – 5% |
| Plan options | Regular plan Direct plan Growth option Income Distribution cum Capital Withdrawal IDCW payout and reinvestment |
| Fund Manager | Sankaran Naren Manish Banthia Ritesh Lunawat Dharmesh Kakkad Nishit Patel Priyanka Khandelwal |
| Exit Load | Redemption or switching within 12 months from the allotment – 1% on NAVRedemption or switching after 12 months from the allotment – NIL |
| Minimum Investment | Minimum application amount during NFO: Rs. 1000 and multiples of Re 1 thereafter Minimum application amount for switch-ins – Rs. 1000 and any other amount thereafter SIP – minimum Rs. 100 with at least 6 instalments – can be made daily, weekly, fortnightly, or monthly. Quarterly SIPs – minimum Rs. 5,000 and at least 4 instalments. |
| Expense Ratio | Not known yet |
| NFO Period | 27 Dec 2021 – 10 Jan 2022 |
Where can you invest in the NFO?
Head over to the Fisdom App to invest in this NFO.
