ICICI Prudential Mutual Fund has launched a new open-ended scheme—ICICI Prudential Diversified Equity All Cap Active Fund of Funds (FOF)—aimed at providing diversified exposure across equity mutual fund categories. The New Fund Offer (NFO), which opened on March 2, 2026, is scheduled to close on March 16, 2026.
Fund Structure and Benchmark
The scheme follows a fund-of-funds approach, investing primarily in a selection of actively managed domestic equity mutual funds. These underlying funds span across large-cap, mid-cap, and small-cap segments, enabling broad-based market participation.
The benchmark for the scheme is the Nifty 500 Total Return Index (TRI), which reflects performance across a wide spectrum of listed Indian companies.
Dynamic Allocation Strategy
The fund is designed with a flexible allocation strategy that adjusts exposure across market capitalisations based on evolving market conditions.
According to Sankaran Naren, different segments of the equity market tend to outperform at different phases of the economic cycle. The scheme aims to capture these shifts through a disciplined and adaptive allocation process, rather than reacting to short-term trends.
Investment Framework
As outlined in the Scheme Information Document (SID), the fund adopts a top-down investment approach. Key factors considered in allocation decisions include:
- Macroeconomic indicators such as GDP growth, inflation trends, and interest rate cycles
- Domestic consumption and demand outlook
- Global economic developments and market conditions
In addition, valuation parameters like price-to-earnings (P/E) and price-to-book (P/B) ratios are evaluated to determine the relative attractiveness of different market segments.
Portfolio allocations may be periodically rebalanced in line with the scheme’s investment objectives.
Fund Management
The scheme will be managed by:
- Dharmesh Kakkad
- Sharmila D’silva
Both fund managers bring experience in managing multi-asset and equity-oriented investment strategies.
Summary
- ICICI Prudential MF launches Diversified Equity All Cap Active FOF
- NFO open from March 2 to March 16, 2026
- Invests in active equity mutual funds across large, mid, and small caps
- Benchmarked against Nifty 500 TRI
- Follows a dynamic allocation strategy based on market cycles
- Uses a top-down approach incorporating macroeconomic and valuation factors
- Managed by Dharmesh Kakkad and Sharmila D’silva
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.