NFO Update: ICICI Prudential Flexicap Fund

ICICI Prudential Mutual Fund, one of India’s largest asset management companies in India with an AUM of more than Rs 4 lakh crore at the end of March 2021, has announced the launch of its newly open-ended equity scheme i.e. ICICI Prudential Flexicap Fund. The new fund offer opens for subscription on June 28, 2021, and closes on July 12, 2021. This fund falls under the newly-created category of ‘Flexi-cap’.   

Objective: It is an open-ended equity scheme that aims to provide capital appreciation by investing in equity and equity-related securities across market capitalisation, based on an in-house market cap allocation model.  

 Strategy: ICICI Prudential Flexicap Fund aims to follow a mix of the top-down and bottom-up approaches to identify opportunities in large, mid, and small-cap space, respectively. The investment universe considered will be S&P BSE 500. The stock selection can be based on multiple parameters such as company fundamentals & valuations among other factors.  

The allocation between different market caps will be assessed and re-balanced on a periodic basis, based on an in-house model and in line with the asset allocation of the scheme. This model consists of parameters such as valuation, relative strength index differential, market cap weight as a percentage of the total market cap, to name a few. Cues from various economic indicators such as business and economic fundamentals will be employed for strong stock selection.   

The purpose of such a portfolio is to limit the downside and provide liquidity by exposure to large-cap companies during volatile times. On the other hand, with expected economic recovery post the lockdown phase, mid and small-caps may be better-positioned to capture potential upside in the economic recovery journey.  

This scheme will be managed by Senior Fund Manager Rajat Chandak while the overseas investments by Fund Manager Priyanka Khandelwal.