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ICICI Prudential Mutual Fund has launched a new fund of funds in the multi-asset space. The fund will invest in index funds and ETFs across the various asset classes of the fund house or of any other fund company.
The scheme opened up for a subscription on December 27, 2021, and will close on January 10, 2022.
About the strategy
The fund will invest across the various asset classes such as domestic and global equity, debt and gold through index funds and ETFs. Domestic equity is looked upon to generate capital appreciation through India growth story. The debt asset class aims to generate stable returns and long term wealth creation opportunities. Gold is looked upon as a potential hedge against inflation, and the global equity will be used to have diversification benefits and help invest in megatrends.
As per the AMC, the fund will follow the Valuations, Triggers and Technicals (VTT) investment approach to decide on the fund's asset allocation. The valuations will help ascertain whether an asset class is expensive or cheap based on various indicators. Triggers are events such as interest rates movements, global factors, etc., which can impact (positive/negative) any asset classes. Technicals will help select ETFs/Index funds based on their relative performance.
The graph shows the average returns delivered by the category of multi-asset funds in any five years.
About the AMC
As on November 2021, ICICI Prudential Mutual Fund manages assets worth over Rs 4.78 lakh crore across 134 open-end schemes making it the second-largest fund house.
When it comes to the passive line-up of the AMC, it ranks fifth with 39 schemes (including index funds, ETFs and FoFs), managing assets worth over Rs 46,500 crore. Of these, assets worth over Rs 16,300 crores are managed across the 13 funds of funds, while the rest is in index funds and ETFs. The fund house has the highest number of FoFs in the industry.
It currently has one actively managed multi-asset fund launched in 2002 and manages assets worth over Rs 12,200 crore.
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Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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