ICICI Prudential Conglomerate Fund NFO Launching October 3, 2025

The NFO is an open-ended thematic equity scheme designed to generate long-term capital appreciation by investing primarily in equity and equity-related instruments of conglomerates. The scheme follows a diversified approach, identifying companies across various sectors and market capitalisations that form part of conglomerates, based on definitions outlined by AMFI. With flexibility across market caps, the fund uses both top-down and bottom-up strategies to capture growth opportunities while maintaining diversification. The benchmark for the scheme is the BSE Select Business Groups Index, and it will be available in both direct and regular plans with options for growth and income distribution.

Key Features of ICICI Pru Conglomerate Fund

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• Opening Date: October 3, 2025
• Closing Date: October 17, 2025
• Exit Load: 1% if redeemed within 12 months; NIL after 12 months
• Minimum Investment Amount: ₹1,000 and in multiples of ₹1

Objective of ICICI Pru Conglomerate Fund

The primary objective of the ICICI Pru Conglomerate Fund - Direct (G) is to achieve long-term wealth creation by investing in equity and equity-related instruments that follow the conglomerate theme. However, there is no guarantee or assurance that this objective will be achieved.

Investment Strategy of ICICI Pru Conglomerate Fund

• Will primarily invest in companies that are part of conglomerates across various sectors and market capitalisations.
• Uses both top-down and bottom-up investment approaches to build a diversified portfolio.
• Focuses on companies with sound management, stable financials, ethical governance, and sustainable business models.
• May invest in IPOs, primary offerings, and overseas markets through instruments like GDRs, ADRs, and foreign securities.
• Can allocate to debt, money market instruments, and mutual fund units for diversification and liquidity management.

Risks Associated with ICICI Pru Conglomerate Fund

• Market Risk: NAV may fluctuate due to stock market volatility, political changes, or interest rate movements.
• Settlement Risk: Delays in buying or selling securities could impact opportunities and returns.
• Portfolio Concentration Risk: Investing in a conglomerate theme could expose the fund to higher volatility if a particular sector underperforms.
• Volatility Risk: Equity and derivative markets may witness sharp fluctuations affecting portfolio value.
• Redemption Risk: While the scheme is open-ended, redemptions may face restrictions during extraordinary circumstances.

Risk Mitigation Strategy by ICICI Pru Conglomerate Fund

The NFO manages risks through diversification across multiple sectors and market capitalisations within the conglomerate theme. It focuses on companies with strong fundamentals, sound balance sheets, and ethical governance practices to limit exposure to weak businesses. The fund employs rigorous credit evaluation for debt instruments and applies risk management tools to monitor exposure. Use of derivatives will be strictly for hedging and portfolio balancing, thereby reducing volatility. Overall, the scheme aims to manage risks by adopting a long-term, fundamentally driven investment approach.

What Type of Investor Should Invest in ICICI Pru Conglomerate Fund?

• Investors with a long-term wealth creation goal.
• Those looking for equity exposure through a thematic portfolio.
• Individuals who can withstand moderate to high market volatility.
• Investors are comfortable with a sectoral/thematic strategy focusing on conglomerates.

Where will the ICICI Pru Conglomerate Fund invest?

• Equity and equity-related instruments of conglomerates across different sectors and market caps.
• IPOs, rights issues, and primary market opportunities.
• Overseas securities such as ADRs, GDRs, bonds, and foreign mutual funds.
• Debt and money market instruments for diversification and liquidity.
• Units of REITs, InvITs, and other permissible asset classes.