NFO Alert: ICICI Prudential Mutual Fund to launch 3 life cycle funds

ICICI Prudential Mutual Fund has announced the launch of three life cycle funds — ICICI Prudential Life Cycle Fund 2031, ICICI Prudential Life Cycle Fund 2036 and ICICI Prudential Life Cycle Fund 2041. These open-ended schemes are designed around a pre-determined maturity and a glide path strategy for goal-based investing.

The new fund offer, or NFO, for all three funds is open for subscription and will close on September 9.

The funds follow a glide-path strategy, with higher equity exposure in the early years that gradually reduces as the target maturity approaches, while debt and money-market allocations increase. This rules-based approach aims to reduce portfolio risk as investors near their goals, without requiring them to rebalance manually.


Also Read |Altiva Equity Long Short Fund to launch on September 10; Radhika Gupta explains its large-cap alpha strategy

Each scheme may invest across equity and equity-related securities, debt and money market instruments, units of Gold and Silver ETFs, Gold and Silver Exchange Traded Commodity Derivatives (ETCDs), and Infrastructure Investment Trusts (InvITs). Equity allocation may also include equity arbitrage exposure, subject to the total equity and equity-related exposure remaining within the scheme limits.

“The Lifecycle Fund brings together the long-term mindset we have developed through our experience with closed-end funds and our expertise in managing hybrid funds. With 5-, 10- and 15-year horizon offerings, investors can align the fund with a specific financial goal. The key remains that the investment approach evolves as the investor moves closer to the goal,” said S Naren, ED & CIO, ICICI Prudential Mutual Fund.

“The longer time horizon allows for greater participation in equity, while the allocation can progressively become more conservative as the scheme approaches maturity. At the same time, being an open-ended scheme, it gives investors the flexibility to enter or exit without being constrained by the maturity date. We believe this combination of a defined goal, evolving asset allocation and flexibility can make the Lifecycle Fund a meaningful addition to an investor’s portfolio for those with a known financial requirement in the future,” Naren further said.

Life Cycle Fund 2031
The fund will benchmark its performance against the Nifty 200 TRI (50%) + Nifty Composite Debt Index (45%) + Domestic Price of Gold (3%) + Domestic Price of Silver (2%). It will be managed by Aatur Shah, Manish Banthia, Rohit Lakhotia and Gaurav Chikane.

The five-year Life Cycle Fund 2031 will start with an equity allocation of 35–50% when three to five years remain until maturity. This will gradually decline to 20–35% when one to three years remain and 5–20% when less than one year remains until maturity.

Life Cycle Fund 2036
The fund will benchmark its performance against the Nifty 200 TRI (65%) + Nifty Composite Debt Index (30%) + Domestic Price of Gold (3%) + Domestic Price of Silver (2%). It will be managed by Manasvi Shah, Manish Banthia, Rohit Lakhotia and Gaurav Chikane.

The 10-year Life Cycle Fund 2036 will start with an equity allocation of 50-65% when five to 10 years remain until maturity. This will gradually decline to 35-50% when three to five years remain, 20-35% when one to three years remain and 5-20% when less than one year remains until maturity.

Life Cycle Fund 2041
The fund will benchmark its performance against the Nifty 200 TRI (65%) + Nifty Composite Debt Index (30%) + Domestic Price of Gold (3%) + Domestic Price of Silver (2%). It will be managed by Divya Jain, Manish Banthia, Rohit Lakhotia and Gaurav Chikane.

The 15-year Life Cycle Fund 2041 will start with an equity allocation of 65–80% when 10 to 15 years remain until maturity. This will gradually decline to 50–65% when five to 10 years remain, 35–50% when three to five years remain, 20–35% when one to three years remain and 5–20% in the final year.

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

If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will get them answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in along with your age, risk profile and Twitter handle.