ICICI Prudential Asset Mutual Fund has launched a new mutual fund offering. The ICICI Prudential Balanced Hybrid Fund is an open-ended balanced scheme that invests exclusively in equity and debt instruments.
The New Fund Offer (NFO) period opens on 30-June-2026, and will close on 14-July-2026. You can purchase units during this period at a face value of ₹ 10 each.
ICICI Prudential Balanced Hybrid Fund NFO Details
| Particular | Details |
| Fund Name | ICICI Prudential Balanced Hybrid Fund |
| Fund Type | An open-ended balanced scheme |
| Category | Hybrid Scheme – Balanced Hybrid Fund |
| Benchmark | CRISIL Hybrid 50+50 Moderate Index |
| Fund Managers | Mr. Roshan Chutkey, Mr. Manish Banthia, and Mr. Akhil Kakkar |
| NFO Open Date | 30-June-2026 |
| NFO Close Date | 14-July-2026 |
| Allotment/Reopening Date | 22-July-2026 |
| Minimum Investment | ₹ 500/- |
| Additional Investment | ₹ 100/- |
| SIP | ₹ 100/- |
| NAV | ₹ 10/- |
| Stamp Duty | 0.005% |
| Entry Load | Nil |
| Exit Load | Nil for up to 30% of units redeemed within 1 year. 1% of applicable NAV for units redeemed in excess of 30% within 1 year. Nil after 1 year. |
Company Details
| Particular | Details |
| AMC Name | ICICI Prudential Asset Management Company Limited |
| AUM | ₹11,69,422 crores |
| Website | www.icicipruamc.com |
| enquiry@icicipruamc.com | |
| Address | 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi-110 001 |
| Contact Number | 1800222999 / 18002006666 |
Source: AMFI India : New fund offer
What has ICICI Prudential Mutual Fund launched?
The asset management company has introduced a balanced hybrid fund. This type of mutual fund invests a relatively equal proportion of its capital into equity and debt markets.
The fund is mandated to keep its equity and equity-related instruments allocation between 40% and 60% of total assets, and its debt and money market instruments allocation also between 40% and 60%.
How does the strategy work?
The fund follows an active investment strategy. The fund managers adjust the portfolio between equity and debt based on market conditions, economic scenarios, and interest rate movements.
On the equity side, the fund invests across various market capitalisations and sectors, focusing on business fundamentals, long-term growth prospects, and relative valuations.
For the debt portion, the fund invests in fixed-income and money market securities across different durations and credit ratings, evaluating the financial health of issuers and macroeconomic trends.
Strategy process
| Step | What happens? |
| Step 1 | The fund managers analyse the macroeconomic environment, including interest rates and global events. |
| Step 2 | Capital is allocated to equity and equity-related securities (40% to 60%) to seek long-term capital appreciation. |
| Step 3 | Capital is allocated to debt and money market instruments (40% to 60%) to manage volatility and generate income. |
| Step 4 | The portfolio undergoes active management and periodic rebalancing to remain within the targeted allocation ranges and respond to market changes. |
Let’s see through an example
Consider an investor who allocates ₹10,000 into the ICICI Prudential Balanced Hybrid Fund. The managers might allocate ₹ 5,000 (50%) to a diversified basket of company stocks, aiming for growth.
They allocate the remaining ₹ 5,000 (50%) to government bonds and corporate debt, aiming for stable interest income and lower volatility.
The debt portion of the portfolio helps cushion the overall impact on the ₹ 10,000 investment if the stock market experiences a sharp decline.
Conversely, if the stock market rises, the equity portion captures that growth.
Potential benefits
| Potential benefit | Why does it matter? |
| Diversification | The fund invests in both equity (40-60%) and debt (40-60%), which balances growth potential with income generation. |
| Active Management | Fund managers actively shift investments across sectors and market capitalisations based on earning outlooks and valuations to capture opportunities. |
| Risk Mitigation | The debt component helps provide stability and lower the high volatility typically associated with pure equity portfolios. |
What are the key risks?
| Risk | What Does It Mean? |
| Market Risk | The Net Asset Value (NAV) will fluctuate based on economic, political, and market developments affecting stock prices and interest rates. |
| Credit Risk | The issuers of the fixed-income securities held by the fund may default on their interest or principal payments. |
| Interest Rate Risk | When general interest rates rise, the prices of the existing fixed-income securities in the portfolio generally fall, which can impact the NAV. |
| Liquidity Risk | The fund may struggle to sell certain unlisted or lower-rated securities quickly without impacting the sale price. |
Who may consider this fund?
| Investor Type | Why? |
| Investors seeking a balanced portfolio | The fund aims to provide long-term capital appreciation and income by investing in both equity and debt. |
| Investors with a moderate to moderately high risk tolerance | The scheme carries a “moderately high” to “high” risk-o-meter rating, suiting those comfortable with some market volatility. |
| Investors with a medium to long-term horizon | Equity and debt investments require time to navigate market cycles effectively. |
Who may not find it suitable?
| Investor Type | Why? |
| Short-term investors | The fund carries an exit load if more than 30% of units are redeemed within one year, making it less suitable for short-term parking of funds. |
| Investors seeking guaranteed returns | There is no assurance or guarantee that the investment objective of the scheme will be achieved. |
| Investors wanting pure equity exposure | The fund strictly limits equity exposure to a maximum of 60%, limiting participation in massive stock market rallies compared to pure equity funds. |
ICICI Prudential Balanced Hybrid Fund vs Traditional investment options
| Investment Option | Return Potential | Risk | Complexity |
| Fixed Deposit | Fixed and predictable | Low | Low |
| Debt Mutual Fund | Moderate | Low to Moderate | Low |
| Hybrid Mutual Fund | Moderate to High | Moderate to High | Moderate |
| Equity Mutual Fund | High | High to Very High | Moderate |
| New Fund (ICICI Prudential Balanced Hybrid Fund) | Moderate to High | Moderately High to High | Moderate |
Zenith Finserve’s view
At Zenith Finserve, we believe that product suggestions must always follow thorough analysis and planning.
A balanced hybrid fund like the ICICI Prudential Balanced Hybrid Fund offers a straightforward way to achieve a 50/50 split between equity and debt within a single product.
This specific fund fits into your portfolio depends entirely on your unique financial goals, existing asset allocation, risk profile, and investment horizon.
How can Zenith Finserve help?
At Zenith Finserve, we follow a process-driven investment framework.
We assess your goals, cash flows, risk profile, time horizon, existing investments, loans, and tax situation before suggesting investments.
We align our investment suggestions to match your needs. Then, we review them periodically to keep them aligned with your changing life and financial position.
Frequently Asked Questions (FAQs)
What is the New Fund Offer (NFO) period for this scheme?
The NFO opens on 30-June-2026, and closes on 14-July-2026.
What is the minimum amount required to invest during the NFO?
The minimum application amount during the NFO is ₹ 500/- and in multiples of Re. 1/- thereafter.
Does this fund charge an entry load?
No, the scheme does not charge any entry load.
Are there any penalties for withdrawing my money early?
Yes. If you redeem or switch out more than 30% of your units within one year from the date of allotment, an exit load of 1% of the applicable NAV will be charged. There is no exit load after one year.
Can this fund invest in international markets?
Yes, the scheme is permitted to invest up to 35% of its net assets in overseas securities, ADRs, GDRs, and overseas ETFs.
Will this fund use arbitrage strategies?
No, the scheme is not permitted to take any arbitrage positions.
Can I set up a Systematic Investment Plan (SIP) in this fund?
Yes. You can start a daily, weekly, fortnightly, or monthly SIP with a minimum of ₹ 100 for at least 6 instalments. Quarterly SIPs require a minimum of ₹ 5,000 for at least 4 instalments.
What benchmark will the fund’s performance be measured against?
The fund’s performance will be benchmarked against the CRISIL Hybrid 50+50 Moderate Index.
