Have you ever wondered where the money you invest in mutual funds is invested? Today let us tell you about one such fund in which your money is also invested in Gold and Silver ETFs. So let us know what are its details. Actually, ICICI Prudential Multi-Asset Active FOF will mainly invest in Active Equity-Oriented Scheme, Active Debt-Oriented Scheme and Gold ETF/Silver ETF.
Allocation of investments across asset classes will be based on market conditions, macro-economic environment, valuations and attractiveness of individual asset classes, using ICICI Prudential AMC's proprietary investment framework. The objective of this scheme is to take advantage of growth opportunities while maintaining portfolio diversification during changing market cycles. An investor who remains invested for 24 months or more will be eligible for long-term capital gains tax.
What is Multi Asset Active FOF?
ICICI Prudential Mutual Fund has launched ICICI Prudential Multi-Asset Active FOF. It is an open-ended 'fund of funds' scheme that primarily invests in units of active equity-oriented schemes, debt-oriented schemes and gold ETFs/silver ETFs. The scheme will adjust its exposure to these asset classes based on current market conditions, valuation signals and macro-economic trends. Shankaran Naren, executive director and chief investment officer, ICICI Prudential Asset Management Company, said: Different asset classes perform differently across economic and market cycles, so disciplined asset allocation becomes an important part of long-term investing. ICICI Prudential Multi-Asset Active Fund of Funds (FOF) brings together active equity, debt and gold ETFs/silver ETFs in a single portfolio, using our unique valuation and macro-economic models to proactively adjust the allocation as market conditions change. It aims to help investors take advantage of opportunities across different asset classes through a systematic and research-based investment process, making the investment experience more consistent.
How is your investment allocated?
The performance of different asset classes varies depending on the economic cycle, inflation, interest rates and market mood. The scheme does not try to predict which asset class will perform better next time, rather it allocates investments across equity, debt and gold ETFs/silver ETFs based on their relative attractiveness.
This scheme combines three different portfolio objectives
The portfolio allocation framework includes
Investment can be done with only Rs 1000
The portfolio of the scheme can be changed as per the provisions of the 'Scheme Information Document' of the scheme. The asset allocation and investment strategy will be as per the 'Scheme Information Document'. The AMC will evaluate the market situation while taking exposure in Gold/Silver ETFs. Considering the current market conditions, the exposure in Gold ETF will be limited to 5% of Assets Under Management and will be reviewed from time to time. The allocation of investments across these asset classes is actively managed based on market conditions and the attractiveness of each asset class. A minimum investment of Rs 1,000 can be made in this NFO. Its options include direct plan and regular plan. Its benchmark is 55 percent Nifty-200 TRI + 35% Nifty Composite Debt Index + 7% domestic price of gold + 3% domestic price of silver. Its fund managers are Dharmesh Kakkar, Manish Banthia, Akhil Kakkar, Sharmila D'Silva and Gaurav Chikne. Historical data shows that leadership among equity, debt and gold changes from time to time, reinforcing the importance of investing in different types of assets (diversified asset allocation). AMC believes that the current environment is favorable for diversified investments, with India's structural growth supporting equities. Fixed income is providing relative stability to the portfolio, and gold/silver are acting as a potential hedge against inflation and geopolitical uncertainty.
