NFO Alert: ICICI Prudential Mutual Fund announces launch of balanced hybrid fund

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Balanced Hybrid Fund. This open-ended balanced scheme invests only in equity and debt instruments, with no arbitrage permitted within the scheme.

The new fund offer or NFO of the fund is open for subscription and will close on July 14. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

Also Read | 10 equity mutual funds deliver over 25% returns in 2026, one of them doubled money


The scheme aims to provide capital appreciation and income by investing in equity and debt instruments through an active strategy. On the equity side, the fund will invest across market capitalisations and sectors, while on the debt side it will look for opportunities across duration, AAA/G sec and credit. The portfolio will be evaluated on a periodic basis depending on valuations and market conditions, with allocation to equity and debt decided on the basis of earnings and bond yields.

“ICICI Prudential Balanced Hybrid Fund is designed to strike a suitable balance between equity and debt allocation, with each receiving an allocation of 40-60% of the portfolio, basis prevailing market conditions. We believe this balanced approach is well placed to navigate the current environment while supporting both income generation and long-term wealth creation for investors,” said Sankaran Naren, Executive Director and Chief Investment Officer, ICICI Prudential AMC.

The scheme shall invest 40-60% of its portfolio in equity and equity-related instruments and 40 60% in debt and money market instruments. By combining equity and debt within a single portfolio, the scheme aims to limit downside during equity market drawdowns relative to an equity oriented scheme.

Under equity segment, the investment strategy will be a selectively curated portfolio of stocks constructed using a combination of top-down and bottom-up approaches, with equal importance given to the macro backdrop, sector and sub-sector cycles, GDP, inflation, interest rates and currency movement on one hand, and company-specific research, profitability, cash flow generation, moat and demand on the other.

In the debt segment, the investment strategy will be that the securities are selected across the credit and duration spectrum based on the fund's view on interest rates, credit spreads and the overall economy, combining accrual strategies aimed at generating consistent income with tactical duration management.

The credit selection process will be a process spanning portfolio construction by the fund manager (including interest rate calls, deal sourcing and liquidity management), credit evaluation by the credit analyst (including structuring of covenants and diversification).

Also Read | Which mutual funds are best for SWP? Expert explains, also decodes STP tax implications

The minimum investment amount is Rs 500 plus in multiple of Re 1. The fund will offer direct and regular plans. The performance will be benchmarked against CRISIL Hybrid 50+50 - Moderate Index. The performance will be benchmarked against Roshan Chutkey, Manish Banthia and Akhil Kakkar.

The fund is suitable for investors who are seeking long term capital appreciation/income and want to invest only in equity and debt instruments. The principal invested in the fund will be at high risk according to the riskometer of the fund.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)