ICICI Prudential Mutual Fund to launch NFO for flexicap fund

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NEW DELHI: ICICI Prudential Mutual Fund has announced the launch of a flexicap fund, an open-ended equity scheme, which 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.

The new fund offer will open on 28 June and close on 12 July.

The flexicap fund will follow a mix of top-down and bottom-up approach to identify opportunities in large-, mid- and small-cap spaces.

According to the asset management company (AMC), the investment universe considered will be the S&P BSE 500 and the stock selection can be based on multiple parameters such as company fundamentals, valuations, among others.

“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,” said Nimesh Shah, MD and CEO, ICICI Prudential AMC.

The scheme is being managed by senior fund manager Rajat Chandak and overseas investments will be managed by fund manager Priyanka Khandelwal.

It will invest 65-100% in equity and equity-related instruments of large-cap, mid-cap and small-cap companies, 0-35% in other equity and equity-related instruments, 0-35% in debt instruments, units of debt mutual fund schemes and money market instruments and 0-10% each in preference shares and units issued by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).

In November, the Securities and Exchange Board of India (Sebi) launched a flexi-cap category for mutual funds, requiring funds under this category to invest at least 65% of their corpus in equity, but without any restrictions on whether they can invest in large-, mid-, or small-cap stocks.

This came after the markets regulator in September introduced new norms for asset-allocation rules for multi-cap funds, mandating a minimum 25% allocation each in large-, mid-, and small-cap stocks.

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