NFO Launch: ICICI Prudential Introduces ICICI Pru Quality Fund

ICICI Prudential Mutual Fund has launched a new open-ended equity scheme – ICICI Prudential Quality Fund. This fund aims to invest in fundamentally strong companies that demonstrate consistent financial performance, including high return on equity, robust cash flows, and low debt. The New Fund Offer (NFO) opens on May 6, 2025, and will remain open for subscription until May 20, 2025.

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Details of the NFO: ICICI Quality Fund - Direct (G)

Investment Objective and Strategy:

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Objective:

The investment objective of this scheme is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies that exhibit strong quality characteristics. While the scheme follows a focused investment approach, there is no guarantee that the objective will be achieved.

Investment Strategy:

This fund is built around a strategy that identifies businesses with strong fundamentals. These include companies with high return on equity (ROE), healthy cash flows, low levels of debt, and a consistent record of sound capital allocation. By combining these factors with reasonable valuations, the fund aims to create a portfolio that can withstand market volatility and deliver stable growth over time.
The fund follows a flexible investment approach, using both macroeconomic (top-down) and company-specific (bottom-up) research. It aims to maintain diversification across sectors and market capitalisations. The portfolio will be built by filtering around 625 companies down to a focused list of 40 to 60, based on strict quality and valuation criteria.

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Why Invest in ICICI Pru Quality Fund - Direct (G)?

During the launch of the ICICI Pru Quality Fund NFO, Mr. Sankaran Naren, ED & CIO of ICICI Prudential AMC, explained, “In today’s environment of economic uncertainty and moderating growth, businesses with sound financials and sustainable profitability stand out. ICICI Prudential Quality Fund aims to tap into this potential by selecting high quality* companies available at reasonable valuations, thereby aiming to build a resilient portfolio designed to perform across market cycles. With attractive valuations in the quality segment, we believe this is an opportune time for investors to adopt a quality-focused strategy.”

This scheme is generally suitable for investors aiming for long-term wealth creation. If you're looking for an open-ended equity fund that invests in fundamentally strong companies with a focus on quality, this could be a suitable addition to your portfolio.

Final Thoughts

The ICICI Pru Quality Fund - Direct (G) is uniquely designed to help investors build a resilient and growth-oriented portfolio by focusing on companies that consistently perform well. It offers a smart and timely way to invest in quality businesses with the potential to weather market uncertainties and deliver over the long term.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.