ICICI Prudential Flexicap Fund NFO

ICICI Prudential Flexicap Fund NFO-Should You Invest?

Spread the love

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 nameICICI Prudential Flexicap Fund
Type of schemeAn equity fund that will invest in stocks of large-cap, mid-cap, and small-cap companies
NFO DatesJune 28, 2021, to July 12, 2021
Fund ManagersRajat ChandakPriyanka Khandelwal
BenchmarkS&P BSE 500 TRI
Minimum Amount for Application during NFORs.5,000 and in multiples of Re. 1/- after that.  
Minimum Additional Application AmountRs.1,000 and in multiples of Re. 1/- after that.
Minimum Redemption AmountAny amount
Loada) 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.
PlansDirect and Regular
OptionsGrowthIDCW Option (with IDCW Payout and IDCW Reinvestment sub-options)
Minimum SIP AmountRs 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
Equity & Equity related instruments of large-cap, mid-cap and small-cap companies 65%100%Medium to high
Other Equity & Equity related instruments0%35%Medium to high
Debt instruments, Units of DebtMutual Fund schemes, and Money market instruments0%35%Low to medium
Preference shares0%10%Medium to high
Units issued by Reits and InvIT0%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

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *