ICICI Prudential MF bets on diversification with new equity, debt, gold and silver fund

As market volatility, inflation concerns and shifting interest-rate cycles continue to influence investor behaviour, asset management firms are introducing diversified investment strategies that seek to balance growth with stability across market environments.

In this context, ICICI Prudential Asset Management Company has introduced a new multi-asset fund-of-funds offering that combines exposure to equity, debt and precious metals through a single portfolio structure.

The new scheme, ICICI Prudential Multi-Asset Active FOF, opens for subscription on June 30 and closes on July 14.

The fund is structured as an actively managed fund of funds, investing primarily in equity-oriented mutual fund schemes, debt-oriented schemes, and Gold and Silver exchange-traded funds (ETFs).

The launch reflects a broader trend within the mutual fund industry toward multi-asset investing, where fund managers dynamically shift allocations between asset classes depending on market conditions, valuations and macroeconomic indicators.

Such strategies have gained traction amid increased uncertainty across global markets, as investors look for diversified portfolios that may reduce dependence on a single asset class.

According to the scheme framework, equity exposure may range between 30% and 80% of the portfolio, while debt allocation can vary from 10% to 60%. Exposure to Gold and Silver ETFs is expected to remain between 10% and 30%, subject to market conditions and internal allocation models.

The fund house said the allocation strategy will rely on proprietary valuation and macroeconomic frameworks to determine the relative attractiveness of different asset classes over time.

The approach is designed to respond to changing economic cycles, including variations in inflation, interest rates and market sentiment.

Multi-asset products have seen growing interest in recent years as historical performance trends show leadership among equities, fixed income and gold shifting across market cycles. In periods of elevated volatility or geopolitical uncertainty, precious metals have often been used as portfolio diversifiers, while debt instruments can help provide relatively stable accrual income.

At the same time, equities continue to remain central to long-term wealth creation strategies, particularly in markets such as India where investors remain optimistic about structural economic growth and domestic consumption trends.

The scheme will benchmark its performance against a blended index comprising the Nifty 200 TRI, the NIFTY Composite Debt Index, and domestic prices of gold and silver.

The minimum investment amount for the scheme has been set at ₹1,000. The fund will be managed by a team including Dharmesh Kakkad, Manish Banthia, Akhil Kakkar, Sharmila D’silva and Gaurav Chikane.

The launch also comes at a time when retail participation in mutual funds continues to rise, with investors exploring asset-allocation products aimed at navigating uncertain and rapidly changing market conditions.

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