ICICI Prudential Mutual Fund has launched a new multi-asset fund of funds, open for subscription until July 14, 2026. The scheme invests across equity, debt, and gold/silver ETFs, aiming to provide a diversified portfolio through a single investment. Investors can participate with a minimum of ₹1,000, with asset allocation managed dynamically based on market valuations.
What Happened
ICICI Prudential Mutual Fund has introduced a new open-ended multi-asset "fund of funds" (FoF). This scheme allows investors to gain exposure to equity, debt, and precious metals—specifically gold and silver ETFs—through a single investment portfolio. The subscription window for this new fund opened on June 30, 2026, and will remain open until July 14, 2026. The fund is designed to simplify asset allocation for investors by having the fund manager dynamically adjust the mix of assets based on proprietary valuation and macroeconomic models.
Investment Strategy And Allocation
The fund operates with a flexible mandate. It intends to allocate 30% to 80% of its corpus into active equity-oriented schemes, 10% to 60% into active debt-oriented schemes, and 10% to 30% into Gold and Silver ETFs. The core philosophy is to remove the need for investors to manually rebalance their own portfolios as market conditions change. By investing in a mix of assets that often react differently to economic events, the fund aims to lower overall portfolio risk while seeking growth.
Why The Fund of Funds Structure Matters
Because this is a fund of funds, it does not invest directly in individual stocks or bonds. Instead, it invests in other mutual fund schemes already managed by the asset management company. For investors, this creates an all-in-one portfolio. The fund house noted that this structure is intended to capture growth during market upswings, provide stable income from debt during uncertain periods, and use gold and silver as a hedge against inflation.
Costs and Tax Considerations
Investors should note that fund of funds structures can sometimes carry different cost implications compared to direct mutual funds. Since this fund invests in other underlying schemes, investors should look at the total expense ratio to understand the impact of management fees. Regarding taxes, the fund house indicated that holding units for 24 months or more may qualify for long-term capital gains tax treatment under current guidelines. As tax rules can change, investors should review their specific tax situation or consult with a professional.
What Investors Should Track
The fund will be managed by a team including Dharmesh Kakkad, Manish Banthia, Akhil Kakkar, Sharmila D'Silva, and Gaurav Chikane. Its performance will be compared against a composite benchmark, which includes 55% Nifty 200 TRI, 35% NIFTY Composite Debt Index, 7% Gold, and 3% Silver price indicators. Investors should monitor how effectively the fund's dynamic allocation adapts to shifting market cycles compared to this benchmark over the long term. Future updates from the AMC regarding the specific weightage of gold and silver will also be a key monitorable.