ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Flexicap Fund, a new open-ended equity scheme which will be investing in equity and equity related securities across market capitalization, based on an in-house market cap allocation model. The New Fund Offer (NFO) opens on June 28 and closes on July 12.
According to the fund house, ICICI Prudential Flexicap Fund aims to follow a mix of top-down and bottom-up approach to identify opportunities in large, mid and small cap space respectively. The investment universe considered will be the S&P BSE 500. The stock selection can be based on multiple parameters such as company fundamentals, valuations, and so on.
“Flexi cap is one category (as per SEBI Scheme categorisation) among the equity schemes which is the most flexible among the equity scheme offerings. The ICICI Prudential Flexicap Fund has the flexibility to invest across large, mid and small cap space without any restriction. We will be guided by our in-house market cap allocation model to provide direction and help ascertain the right allocation to various market caps. Further, based on macroeconomic factors and business cycle, the fund manager may fine tune the allocation suggested by the model which will be in line with the SID at all times. This complete combination of flexibility with control, we believe, will help investors to comfortably navigate across market conditions, and aid investors in reaching their financial goals effectively,” said Nimesh Shah, MD & CEO, ICICI Prudential AMC.
The fund house said that the large/mid/small cap allocation will be assessed and re-balanced on a periodic basis, based on an in-house model and in line with asset allocation of the Scheme. This model comprises of parameters such as valuation, relative strength index differential, market cap weight as a percentage of total market cap to name a few. Cues from various economic indicators such as business and economic fundamentals driven by in-depth research techniques, employing strong stock selection, long term growth prospects, inflation, current account deficit/surplus, fiscal deficit etc. too can be considered while building portfolio of companies. The Scheme shall follow the investment strategy as mentioned in the SID.
Minimum application amount (including switches) during NFO is Rs 5,000 (plus in multiple of Re. 1).