ICICI Prudential Flexicap Fund NFO is going to open from 28 June 2021 to 12 July 2021. The fund aims to invest across the spectrum based on a market cap allocation model.
Also read: What is a New Fund Offer(NFO) and its importance?
Investment Objective
ICICI Prudential Flexicap Fund is an open-ended equity mutual fund that will dynamically invest in small-, mid-, and large-cap stocks.
Fund Details
| Scheme name | ICICI Prudential Flexicap Fund |
| Type of scheme | An equity fund that will invest in stocks of large-cap, mid-cap, and small-cap companies |
| NFO Dates | June 28, 2021, to July 12, 2021 |
| Fund Managers | Rajat ChandakPriyanka Khandelwal |
| Benchmark | S&P BSE 500 TRI |
| Minimum Amount for Application during NFO | Rs.5,000 and in multiples of Re. 1/- after that. |
| Minimum Additional Application Amount | Rs.1,000 and in multiples of Re. 1/- after that. |
| Minimum Redemption Amount | Any amount |
| Load | a) Entry Load: Not Applicable b) Exit Load: 1%– If redeemed or switched out within 12 months Nil – If redeemed or switched out after 12 months. |
| Plans | Direct and Regular |
| Options | GrowthIDCW Option (with IDCW Payout and IDCW Reinvestment sub-options) |
| Minimum SIP Amount | Rs 100 for a minimum of 6 months |
Also read: Direct Mutual Fund Platforms in India
Indicative Asset Allocation
| Types of Instruments | Indicative allocation (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity & Equity related instruments of large-cap, mid-cap and small-cap companies | 65% | 100% | Medium to high |
| Other Equity & Equity related instruments | 0% | 35% | Medium to high |
| Debt instruments, Units of DebtMutual Fund schemes, and Money market instruments | 0% | 35% | Low to medium |
| Preference shares | 0% | 10% | Medium to high |
| Units issued by Reits and InvIT | 0% | 10% | Medium to high |
Benefits of investing in ICICI Prudential Flexicap NFO
- Flexicap scheme: The fund enables investment across the market cap spectrum, thus offering the safety that comes with investment in large caps and high returns that can be offered from small-cap and mid-cap exposure.
- Diversification: The fund allows for diversification through varied choices. The fund follows the ‘go-anywhere approach for managing the fund that augments exposure to several sectors, themes as well as styles.
- Risk mitigation: The fund also has the capability to mitigate the risk associated with an investment in large, mid, and small caps.
- Dynamically managed: At any given time, flexicap scheme can be overweight or underweight across market caps considering the attractiveness. Thus, they tend to perform well in each of the market cycles.
Also read: Direct Mutual Funds: Features & Benefits
Should You Invest in the ICICI Prudential Flexicap Fund NFO?
The prime considerations when investing in the NFO is the fund’s house standing and ICICI Prudential AMC ranks as the top AMC with the most number of funds i.e. 154 and total assets under management of Rs. 405360 crore. The other consideration is that the fund aims to build up long-term wealth for investors. Furthermore, the mutual fund house shall deploy both top-down as well as bottom-up approaches for finding investment opportunities. There will be periodic re-allocation across market caps as judged by the company’s in-house model.
As per the mandate, the flexicap scheme by ICICI Prudential shall invest 65-100% corpus in equity and equity associated securities across market caps; 0-35% in other equity securities; 0-35% in debt securities; units of debt funds as well as money market instruments as well as 0-10% each in units issued by REITs and InvITs. So, this is an unconstrained approach. This shall be by large into the various sectors and in stocks where there is 3-5 years earnings visibility, management is strong, financial strength. So, investors on the hunt for a good investment vehicle considering the improvement in the nominal GDP can bet on the flexicap fund from ICICI Prudential. The risk-reward trade-off can be better here in the flexicap scheme given the flexibility offered.
Final Thoughts
Investing in an NFO is purely a personal choice. In this post, I tried to explain the features and importance of ICICI Prudential Flexicap Fund NFO. make a detailed study before you invest in the mutual fund. also, discuss with your personal financial advisor before you make the decision.
Happy Investing