ICICI Prudential Launches Multi-Asset Active FOF to Hedge Inflation and Capture Long-Term Growth

ICICI Prudential Launches Multi-Asset Active FOF to Hedge Inflation and Capture Long-Term Growth​

ICICI Prudential Mutual Fund has launched the Multi-Asset Active Fund of Funds (FOF), introducing a sophisticated open-ended scheme designed to navigate diverse market cycles. This new fund aims to offer investors a broadly diversified portfolio by actively managing investments across equity, debt, gold ETFs, and silver ETFs. The NFO is scheduled to commence on June 30 and conclude on July 14, 2026.

##Understanding the Multi-Asset Investment Strategy

The core objective of this FOF is to aid investors in capturing long-term growth opportunities while simultaneously mitigating portfolio volatility through proactive diversification. The fund will dynamically adjust its allocations across asset classes based on proprietary investment frameworks, macroeconomic shifts, and real-time market valuations.

Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC, emphasized the importance of disciplined asset allocation given that different asset classes exhibit varied performance across economic cycles. He stated that the Multi-Asset Active FOF integrates active management in equity and debt with investments in Gold and Silver ETFs into a single structure.

##Allocation Framework and Investment Mandates

The investment strategy outlined by ICICI Prudential provides clear, flexible allocation mandates for the fund portfolio. Equity exposure is set between 30% and 80%, while debt exposure ranges from 10% to 60%. The commodities component, specifically Gold ETFs and/or Silver ETFs, will receive an allocation of 10% to 30%.

The AMC confirmed that the initial exposure allocated to Gold ETFs is capped at 5% of assets under management, subject to regular review. This structure allows the fund to harness potential hedges against inflation and geopolitical uncertainty, complementing the stability offered by fixed-income investments.

##Market Outlook and Fund Benchmarking

ICICI Prudential believes that the current investment climate strongly supports a highly diversified approach across markets. The decision reflects a view on India's strong structural growth prospects alongside the protective role of commodities.

The scheme is benchmarked against a carefully constructed composite index, ensuring performance tracking across all asset segments. This index consists of 55% Nifty 200 TRI, 35% NIFTY Composite Debt Index, and the remaining portions comprising 7% domestic gold prices and 3% domestic silver prices.

##Accessibility and Management Team Details

The Multi-Asset Active FOF is available to investors under both Direct and Regular plans. The minimum investment amount for this scheme has been set at ₹1,000. This ensures that a wide spectrum of investors can participate in the fund's structured approach.

The management of the fund will be overseen by a skilled team including Dharmesh Kakkad, Manish Banthia, Akhil Kakkar, Sharmila D'Silva, and Gaurav Chikane. The combined expertise of these fiduciaries ensures a consistent and research-driven investment experience for all shareholders.