ICICI Prudential Mutual Fund Launches Diversified Equity All Cap Active Fund of Funds; NFO Closes March 16
ICICI Prudential Mutual Fund has introduced a new investment scheme titled ICICI Prudential Diversified Equity All Cap Active Fund of Funds (FOF). The New Fund Offer (NFO) for the scheme opened on March 2, 2026, and will remain available for subscription until March 16, 2026.
The open-ended scheme aims to provide investors exposure to a diversified portfolio of active equity mutual funds across large-cap, mid-cap, and small-cap segments.
Scheme Structure and Benchmark
The fund follows a fund-of-funds structure, meaning it will primarily invest in a selection of existing actively managed equity mutual fund schemes rather than directly investing in individual stocks.
This approach allows investors to gain diversified exposure across multiple investment styles and market capitalisation segments through a single investment vehicle.
The scheme will be benchmarked against the Nifty 500 Total Returns Index, which tracks the performance of a broad range of companies listed in the Indian equity market.
Dynamic Allocation Strategy
According to the fund house, the scheme adopts a dynamic asset allocation strategy that adjusts exposure among large-cap, mid-cap, and small-cap funds depending on market conditions.
Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management Company, explained that different market-cap segments often move through cycles of outperformance and underperformance.
The fund aims to capitalize on these market cycles through disciplined allocation adjustments, rather than reacting solely to short-term market trends.
Investment Framework
As outlined in the Scheme Information Document (SID), the scheme follows a top-down investment approach. This process evaluates several macroeconomic indicators, including:
- Economic growth trends
- Inflation levels
- Interest rate cycles
- Domestic consumption and demand
- Global economic developments
Based on these factors, the fund managers assess the relative attractiveness of different market-cap categories.
The framework also incorporates valuation indicators such as:
- Price-to-earnings (P/E) ratios
- Price-to-book (P/B) ratios
Portfolio allocations may be periodically reviewed and adjusted to align with the scheme’s investment objectives.
Fund Management
The scheme will be managed by:
- Dharmesh Kakkad
- Sharmila D’silva
Both fund managers will oversee asset allocation decisions and the selection of underlying mutual fund schemes.
Summary
ICICI Prudential Mutual Fund has launched the ICICI Prudential Diversified Equity All Cap Active Fund of Funds, an open-ended scheme that invests in active equity mutual funds across large-cap, mid-cap, and small-cap segments. The NFO opened on March 2 and closes on March 16, 2026. Benchmarking against the Nifty 500 TRI, the fund aims to use a dynamic allocation strategy driven by macroeconomic analysis and valuation metrics to adjust exposure across different market-cap segments.
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