NFO Alert: ICICI Prudential Launches New Quality Fund NFO From May 6
The New Fund Offer (NFO) opens on May 6, 2025, and will remain open for subscription until May 20, 2025.
ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Quality Fund, an open-ended equity scheme centred around the Quality Factor investment theme. The New Fund Offer (NFO) opens on May 6, 2025, and will remain open for subscription until May 20, 2025.
The fund seeks to invest in companies demonstrating strong business fundamentals, including high return on equity (ROE), healthy cash flows, low financial leverage, and prudent capital allocation track records. The scheme will follow a disciplined stock selection approach that integrates these quality parameters with a focus on reasonable valuations.
Speaking on the scheme launch, Mr. Sankaran Naren, ED & CIO of ICICI Prudential AMC, said, “In today’s environment of economic uncertainty and moderating growth, businesses with sound financials and sustainable profitability stand out. ICICI Prudential Quality Fund aims to tap into this potential by selecting high-quality* companies available at reasonable valuations, thereby aiming to build a resilient portfolio designed to perform across market cycles. With attractive valuations in the quality segment, we believe this is an opportune time for investors to adopt a quality-focused strategy.”
Why Invest in Quality Now?
Amid growing global economic uncertainties, including geopolitical tensions, elevated interest burdens, and a moderating domestic earnings cycle, the AMC believes that quality stocks can weather the storm. These companies generally outperform in periods of volatility due to their sound balance sheets and growth records.
While the quality theme had underperformed broader markets and other styles like momentum, value and alpha in recent years, this has resulted in more attractive entry valuations today.
*The word quality has to be understood in line with the Investment Strategy of the Scheme.
Data as on March 31,2025. Returns are on absolute basis Past performance may or may not be sustained in the future. FY: Financial Year. For Quality: Nifty 200 Quality 30 TRI, for Value: Nifty 200 Value 30 TRI, for Momentum: Nifty 200 Momentum 30 TRI, for Alpha: Nifty 200 Alpha 30 TRI and for Broader Market: Nifty 200 TRI is used
Flexible & Research-Driven Approach
The ICICI Prudential Quality Fund will follow a flexible investment strategy, drawing from both top-down (macro and sector-level) and bottom-up (company-specific) research. It will help maintain the flexibility to invest across sectors and market caps.
The fund's portfolio construction process involves narrowing down a universe of approx 625 companies to around 40–60 names, based on stringent quality and valuation filters.
Since April 2005, an investment of Rs 1 lakh in the quality index would have grown to Rs 26.8 lakh, compared to Rs 14.5 lakh for the broader Nifty 200 TRI.
Source: NSE Indices Ltd. Data as on March 31, 2025. Past performance may or may not be sustained in the future. For indices TRI value is used
Scheme Details:
- Fund Managers: Ihab Dalwai & Masoomi Jhurmarvala
- Benchmark: Nifty 200 Quality 30 TRI
- Exit Load: 1 per cent if redeemed within 12 months of allotment, nil thereafter
- Plans: Regular & Direct; Options: Growth & IDCW
- SIP / SWP / STP: Available
In conclusion, the ICICI Prudential Quality Fund aims to provide investors with a focused exposure to high-quality companies that exhibit robust financial health and consistent performance. By employing a disciplined investment framework and flexible approach across sectors and market capitalisations, the scheme seeks to deliver sustainable long-term returns. Investors looking to navigate uncertain market conditions while building a resilient equity portfolio may consider participating in the NFO, open from May 6 to May 20, 2025.
Disclaimer: The article is for informational purposes only and not investment advice.