ICICI Prudential Mutual Fund launches passive multi asset scheme

ICICI Prudential Mutual Fund has launched ICICI Prudential Passive Multi-Asset Fund of Funds. The fund will have investments in equity, debt, gold and international passive funds as well as ETFs. The cost of the scheme will be capped at 1%. The NFO opens for subscription on December 27 and closes on January 10, 2022.

The offering aims to provide returns that closely correspond to the total return of the benchmark CRISIL Hybrid 50+50- Moderate Index (80% weightage) + S&P Global 1200 Index (15% weightage) + Domestic Gold Price (5% weightage) subject to tracking errors.

S Naren, ED & CIO, ICICI Prudential Mutual Fund, believes that over the last decade easy liquidity conditions and rate cuts by global central banks created a conducive environment for equity markets to perform. Now with the withdrawal of stimulus measures, multi asset philosophy is likely to provide better outcomes in the near term.

“We believe this product is a simple solution for an investor looking for multi-asset allocation through the passive route. Apart from allocation to domestic equities ETFs/Index, debt ETFs/Index, and gold ETFs, an investor will also have exposure to ETFs/Index investing in global companies as well through this product, thus bringing in geographical diversification as well,” said Chintan Haria, Head – Product Development & Strategy, ICICI Prudential Mutual Fund.

According to the fund house, ICICI Prudential Passive Multi-Asset Fund of Funds aims to be a simple solution for multiple problems. The fund house says that the fund will provide investors the opportunity to take exposure to an offering which is well-diversified across asset classes and provides tactical allocation to a particular sector. The offering is both cost and tax efficient as the investor will not attract any tax incidence when the FoF is rebalanced.