ICICI Pru Active Momentum Fund NFO: Key Features, Strategy & Who Should Invest

The ICICI Pru Active Momentum Fund is an open-ended thematic equity scheme focused on momentum investing. It aims to deliver long-term capital appreciation by investing in equity and equity-related instruments of companies that exhibit strong momentum traits. This includes price momentum and earnings momentum, identified through proprietary models that assess past trends and analyst revisions. The fund applies filters for risk and governance, ensuring a well-curated portfolio of high-potential companies. With dynamic rebalancing, diversification, and the flexibility to invest in overseas markets and debt instruments, the ICICI Pru Active Momentum Fund seeks to balance growth and risk, catering to investors with a higher risk appetite and a long-term investment horizon.

Key Features of ICICI Pru Active Momentum Fund

• Opening Date: July 08, 2025
• Closing Date: July 22, 2025
• Exit Load: 1% if redeemed/switched out within 12 months,  Nil after 12 months
• Minimum Investment: ₹5,000 (in multiples of ₹1 thereafter)

Objective of ICICI Pru Active Momentum Fund

The objective of ICICI Pru Active Momentum Fund - Direct (G) is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies that reflect momentum factors. There is no assurance that the scheme’s objective will be achieved.

Investment Strategy of ICICI Pru Active Momentum Fund

• Invests in stocks demonstrating strong price and/or earnings momentum.
• Applies risk and governance filters to the benchmark universe.
• Employs a proprietary momentum model for stock selection.
• May invest up to 35% in overseas equity-related instruments.
• Includes debt and money market exposure for risk-adjusted returns.
• Utilises derivatives for hedging and portfolio balancing.
• Portfolio reviewed and rebalanced regularly based on market dynamics.

Risks Associated with ICICI Pru Active Momentum Fund

• Market Risk: Equity markets may fluctuate due to macroeconomic and political factors.
• Settlement Risk: Delays in transactions may cause missed opportunities.
• Volatility Risk: High fluctuations in stock or index prices may affect NAV.
• Portfolio Concentration Risk: Exposure to specific sectors may heighten volatility.
• Redemption Risk: High redemptions could impact fund liquidity and operations.
• Currency Risk: Overseas investments expose the portfolio to exchange rate fluctuations.

Risk Mitigation Strategy by ICICI Pru Active Momentum Fund

• The ICICI Pru Active Momentum Fund - Direct (G) mitigates risk through rigorous diversification, investing across multiple sectors and geographies. 
• It actively monitors and rebalances the portfolio using a proprietary model that filters stocks based on risk, governance, and momentum indicators. 
• Derivatives are used for hedging, and liquidity is maintained via exposure to debt instruments and money markets. 
• For international exposure, currency risks are managed through hedging instruments like options, forwards, and swaps. Credit and interest rate risks in debt holdings are minimised through internal credit evaluations and duration management.

What Type of Investor Should Invest in ICICI Pru Active Momentum Fund - Direct (G)?

• Investors seeking long-term capital appreciation through equities.
• Individuals with a high-risk appetite and understanding of market volatility.
• Those interested in momentum-based investment strategies.
• Investors are open to thematic equity exposure with sectoral concentrations.
• People looking for diversification with some debt and global asset allocation.