ICICI Prudential Mutual Fund has launched Multi-Asset Active FOF, an open-ended fund of funds scheme investing in units of active equity-oriented schemes, debt-oriented schemes, and Gold ETFs/Silver ETFs.
The scheme will adjust exposure across these asset classes based on prevailing market conditions, valuation signals and macroeconomic trends.
Fund aims to balance equity, debt and precious metal exposure
Sankaran Naren, Executive Director and Chief Investment Officer, ICICI Prudential AMC, said different asset classes perform differently across economic and market cycles, making disciplined asset allocation an important component of long-term investing.
ICICI Prudential Multi-Asset Active FOF brings together active equity, debt and Gold ETF/Silver ETF in a single portfolio, while using proprietary valuation and macroeconomic models to actively adjust allocations as market conditions evolve, he said.
Investors can participate in opportunities across asset classes through a structured and research-driven investment process, he added.
Allocation to shift based on market conditions
The portfolio allocation framework comprises 30–80 per cent in units of active equity-oriented schemes, 10–60 per cent in units of active debt-oriented schemes and 10–30 per cent in Gold ETFs and silver ETFs.
Considering the current market conditions, exposure to Gold ETFs will be restricted to 5 per cent of AUM, and this will be reviewed over time.
The AMC believes the present environment supports diversified investing, with India’s structural growth supporting equities, fixed income providing relative portfolio stability and bullion acting as a potential hedge against inflation and geopolitical uncertainty.