NEW NFO FROM ICICI PRUDENTIAL MUTUAL FUNDS- కొత్త fund
The ICICI Prudential Active Momentum Fund Regular-Growth is a New Fund Offer (NFO). Here’s a breakdown of what that means and the key details about this specific fund:
What is an NFO?
An NFO (New Fund Offer) is essentially the initial public offering for a mutual fund scheme. When an Asset Management Company (AMC) like ICICI Prudential launches a new mutual fund, they open a limited-time subscription period during which investors can purchase units of the fund at a fixed initial price, typically Rs. 10 per unit. It’s an opportunity for investors to get in on the “ground floor” of a new investment product.
Key Highlights of ICICI Prudential Active Momentum Fund Regular-Growth NFO:
Based on the information provided and recent search results, here’s an explanation:
* Investment Objective: The fund aims to generate long-term capital appreciation by primarily investing in equity and equity-related instruments of companies that exhibit strong “momentum factors.” This means it will focus on stocks that are showing strong price trends and positive earnings revisions. The scheme also intends to minimize risk through reasonable diversification.
* Investment Strategy:
It follows an “active momentum strategy.” This involves identifying stocks with favorable price trends (technical analysis) and strong business performance (fundamental analysis, like margin trends and operational efficiency). The fund will apply filters based on risk and governance criteria to narrow down the investable universe of stocks. It may also use derivatives for hedging and portfolio balancing.
* Fund Type:
It is an open-ended equity scheme following a momentum theme. Open-ended means you can buy and sell units even after the NFO period, at the prevailing Net Asset Value (NAV).
* NFO Period:
The NFO is open for subscription from July 8, 2025, to July 22, 2025. After this period, the fund will reopen for continuous sale and repurchase within five business days from the allotment date.
*Minimum Investment:
* Minimum Lumpsum Investment: Rs. 5,000
* Minimum Additional Investment: Rs. 1,000
* Minimum SIP Investment: Rs. 100 (This makes it accessible for small, regular investments).
* Exit Load:
There’s a 1% exit load if units are redeemed or switched out within 12 months from the date of allotment. There is no exit load if redeemed or switched out after 12 months. The initial information you provided stated 0% exit load, but updated information clarifies the 1% load for early withdrawals.
* Current NAV & Returns:
Since it’s an NFO, there is no “Current NAV” or “trailing returns” available yet for this specific fund. The initial NAV will typically be Rs. 10. The category returns provided (-0.91% (1yr), 23.67% (3yr), and 25.39% (5yr)) are for the broader category the fund belongs to, not the fund itself, as it’s new.
* Fund Size (AUM) & Expense Ratio:
As an NFO, the Assets Under Management (AUM) is currently Rs 0.0 crore, and the expense ratio is also listed as 0.0% for the Regular plan at the moment. These figures will change as the fund gathers investments and begins operations. The expense ratio will be declared in the Scheme Information Document (SID).
* Fund Managers:
Ms. Manasvi Shah will manage the domestic investments, and Ms. Sharmila D’mello will manage overseas investments (if any).
* Benchmark:
The fund will be benchmarked against the Nifty 500 TRI.
* Risk Level:
This fund is categorized as having a Very High level of risk, which is typical for equity-oriented funds, especially those with a thematic/momentum strategy.
* Diversification:
The scheme may invest up to 35% in overseas markets in equity and equity-related instruments, including GDRs, ADRs, and foreign securities, further diversifying the portfolio.
Benefits of Investing in an NFO like this:
* Early Entry into a New Theme/Strategy: NFOs often introduce unique or emerging investment strategies. This fund focuses on “momentum,” which can be appealing to investors looking to capitalize on trending stocks.
* Potentially Lower Entry Price:
While the NAV of Rs. 10 is arbitrary, some investors perceive it as a “lower” entry point compared to existing funds with higher NAVs, allowing them to acquire more units initially.
* Professional Management:
The fund will be managed by experienced fund managers from ICICI Prudential, a well-known AMC.
* Diversification:
It offers a chance to diversify your portfolio with a strategy that might be different from your existing holdings.
Considerations for Investing in an NFO:
No Track Record:
The biggest drawback of an NFO is the lack of a past performance history. You are investing based on the fund’s objective, strategy, and the reputation of the fund house and managers.
* Market Timing:
While NFOs can be launched to capitalize on market opportunities, success depends on the timing of the launch and the performance of the chosen strategy.
* Risk:
As a very high-risk equity fund, it’s suitable for investors with a long-term investment horizon (5-7 years or more) and a high-risk appetite.
In summary, the ICICI Prudential Active Momentum Fund Regular-Growth NFO is an opportunity for investors seeking long-term capital appreciation through an active momentum-based equity strategy. Investors should carefully consider their risk tolerance and investment goals before investing, given that it’s a new fund without a track record.
contact for more information MF DISTRIBUTER D.SATHEESH KUMAR- 91 8341731333
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