ICICI Prudential Asset Management Company Limited has launched the ICICI Prudential Dynamic Asset Allocation Passive FOF, a new fund of funds scheme. The new fund offer, or NFO, opens on 26 August 2026 and closes on 9 September 2026.
ICICI Prudential is the asset management company behind the scheme, one of India’s larger fund houses running mutual funds across equity, debt and hybrid categories.
The fund invests in units of other passive equity and debt schemes, shifting money between the two dynamically. This may interest investors who want one fund to manage their equity-debt mix, instead of doing it manually across several index funds.
ICICI Prudential Dynamic Asset Allocation Passive FOF NFO Details
Field | Details |
Fund name | |
Fund type | Open ended FOF investing dynamically in passive equity and debt schemes |
Category | FOF, Hybrid FOF (Domestic), Dynamic Asset Allocation FOF |
Nature of scheme | Open ended, fund of funds |
Benchmark | CRISIL Hybrid 50+50 Moderate Index |
Fund managers | Dharmesh Kakkad, Manish Banthia, Ritesh Lunawat, Sharmila D’Silva, Nishit Patel |
NFO opens | 26-08-2026 |
NFO closes | 09-09-2026 |
Allotment / Reopening date | Not available |
Minimum investment | Rs 1,000 (multiples of Re 1) |
Additional investment | Rs 1,000 (multiples of Re 1) |
SIP amount | Rs 1,000 (min. 6 instalments); quarterly SIP min. 4 instalments |
NAV | Rs 10 per unit during the NFO |
Stamp duty | 0.005% of transaction value |
Entry load | Nil |
Exit load | Nil up to 30% of units within 1 year; 1% beyond that; Nil after 12 months |
AMC Details
Field | Details |
AMC name | ICICI Prudential Asset Management Company Limited |
Assets under management | ~₹11,56,099 crore to ₹11,76,218 crore |
Website | |
Registered office | 12th Floor, Narain Manzil, 23 Barakhamba Road, New Delhi 110001 |
Contact number | 1800 222 999 (MTNL/BSNL), 1800 200 6666 (others) |
Source: AMFI India — New fund offer | ICICI Prudential Dynamic Asset Allocation Passive FOF
What Has ICICI Prudential Launched?
The ICICI Prudential Dynamic Asset Allocation Passive FOF is a fund of funds, or FOF. A FOF does not buy shares or bonds directly. Instead, it buys units of other mutual fund schemes, which do the direct investing.
The underlying schemes here are passive ones, meaning index funds or exchange traded funds (ETFs) built to track a market index, not funds where a manager picks stocks or bonds by hand.
Here is the part worth understanding. While the underlying schemes are passive, the FOF itself is not hands-off. Its fund managers decide how much to hold in equity-oriented versus debt-oriented passive schemes, moving that mix anywhere from 0% to 100% based on rates, growth, valuations and market conditions.
Stock and bond selection inside each underlying scheme is rule based. The equity-debt split is an active call by ICICI Prudential’s fund managers. The scheme can also hold a small money market allocation for liquidity.
How Does the ICICI Prudential Dynamic Asset Allocation Passive FOF Strategy Work?
The fund managers track macro signals such as interest rates, growth outlook, valuations, market cycle and liquidity conditions, then decide the split between passive equity and debt schemes.
Step | What happens? |
1 | Fund managers assess rates, growth, valuations, market cycle and liquidity |
2 | They set a target mix between passive equity and passive debt schemes |
3 | Money is allocated to selected index funds and ETFs, of ICICI Prudential or other AMCs |
4 | At least 95% stays in these underlying passive schemes under normal conditions |
5 | Up to 5% can sit in money market instruments for liquidity |
6 | The mix is reviewed and rebalanced as the macro view changes |
7 | Any deviation from the set range is corrected within SEBI’s prescribed timelines |
Let’s Understand Through an Example
Say the fund managers turn cautious on equity valuations and expect rates to fall. They might shift more of the portfolio into passive debt schemes, which typically gain when rates fall, and trim equity-scheme exposure.
If growth data later improves and valuations look reasonable again, they could raise the equity-scheme allocation and reduce debt-scheme holdings, without the investor lifting a finger.
Portfolio Allocation
Instruments | Minimum | Maximum |
Units of passive mutual fund schemes | 95% | 100% |
Of which, passive equity oriented schemes | 0% | 100% |
Of which, passive debt oriented schemes | 0% | 100% |
Money market instruments (up to 91-day maturity), incl. Tri-Party Repo | 0% | 5% |
The scheme stays invested at least 95% in underlying passive schemes under normal conditions. This can dip briefly for rebalancing or liquidity needs, and gets corrected within SEBI’s prescribed timelines.
ICICI Prudential Dynamic Asset Allocation Passive FOF Investment Strategy
There is no stock picking inside this FOF. Security selection happens inside the underlying index funds and ETFs, which simply track their benchmarks.
What ICICI Prudential’s team actively manages is the split between passive equity and debt schemes, using the macro framework described above, an active overlay on otherwise passive asset allocation building blocks.
This FOF layers its own recurring expenses on top of what the underlying index funds and ETFs already charge. Per the Scheme Information Document, the extra expense ratio at the FOF level over the underlying schemes’ weighted average cannot exceed twice that average, within regulatory limits.
Liquidity comes from the money market allocation, and because units of the underlying schemes can generally be redeemed on any business day at their own NAV.
Potential Benefits of This FOF
Potential benefit | Why does it matter? |
Single fund for equity-debt balancing | No need to track macro trends and shift between separate index funds yourself |
Access to multiple passive schemes | One investment spans several index funds and ETFs, adding diversification across equity and debt |
Rule based underlying investing | Underlying schemes track indices, so security selection is not left to manager discretion |
Flexibility across market cycles | Allocation can move fully toward equity or fully toward debt depending on conditions |
Who May Consider This Fund?
Investor type | Why it may fit |
Wants one fund to manage equity-debt balance | The FOF’s managers handle the shifting instead of the investor tracking multiple index funds |
Comfortable with a fund manager’s active allocation calls | The building blocks are passive, but the equity-debt split is an active decision |
Has a multi-year horizon | Asset allocation calls tend to play out over cycles, not weeks or months |
Already uses passive index funds and ETFs | This combines several such schemes without buying each one separately |
Who May Not Find It Suitable?
Investor type | Why it may not fit |
Wants to choose their own equity-debt mix | That decision sits with the fund managers here, not the investor |
Wants to select specific index funds themselves | This wraps several underlying schemes into one, so individual choice is not available |
Has a short holding period | Exit load applies on early redemptions, and allocation shifts play out over time |
Seeks direct exposure to specific sectors or stocks | The scheme invests through broad passive index funds and ETFs, not individual securities |
ICICI Prudential Dynamic Asset Allocation Passive FOF vs Traditional Options
Feature | FD | Debt Fund | Hybrid Fund | Equity Fund | This FOF |
Return potential | Fixed | Moderate | Moderate-high | High | Varies with mix |
Volatility | None | Low-moderate | Moderate | High | Varies with mix |
Liquidity | Limited | High | High | High | High, NAV based |
Horizon | Fixed tenure | Short-medium | Medium-long | Long term | Medium-long |
Suits | Capital safety | Steady income | One fund, both assets | Wealth creation | Managed equity-debt mix |
ICICI Prudential Dynamic Asset Allocation Passive FOF Review by Zenith Finserve
This fund sits in the FOF, hybrid dynamic asset allocation category. It suits investors with a multi-year goal, roughly four years or longer, who want one scheme to manage the equity-debt split rather than doing that themselves across separate index funds.
Stock and bond selection within each underlying sleeve is rule based, but how much to hold in equity versus debt at any time remains an active decision by ICICI Prudential’s fund managers. That is a meaningful distinction from a purely passive multi-asset product, worth being clear on before investing.
As a new scheme, it carries no performance history to assess. It can suit goal based investors who already hold direct equity or debt funds and want an allocation that handles rebalancing internally, though suitability still depends on individual goal horizon, existing portfolio and cash flow needs.
How Zenith Financial Management Can Help
At Zenith Financial Management, 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 with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Read more about our approach to mutual fund advisory and investment planning.
Similar NFOs on Zenith
HDFC Nifty Metal ETF FOF NFO: also an FOF, but tracking a single sector index rather than shifting between equity and debt.
AlphaGrep Liquid Omni FOF NFO: an FOF wrapper built around liquid scheme exposure rather than an equity-debt call.
SBI Balanced Hybrid Fund NFO: a hybrid fund seeking a similar equity-debt balance, but via direct holdings, not a FOF.
Frequently Asked Questions
What is the ICICI Prudential Dynamic Asset Allocation Passive FOF?
A fund of funds investing dynamically in passive equity and debt schemes.When does the NFO open and close?
26 August to 9 September 2026.What is the minimum investment?
Rs 1,000, in multiples of Re 1 thereafter.What is the NAV during the NFO?
Rs 10 per unit.Who manages this fund?
Dharmesh Kakkad, Manish Banthia, Ritesh Lunawat, Sharmila D’Silva and Nishit Patel.What does the fund invest in?
Passive equity and debt index funds and ETFs, plus a small money market allocation.Is this fund active or passive?
The underlying schemes are passive; the equity-debt split is actively managed.What is the exit load?
Nil up to a 30% yearly limit; 1% beyond that within 12 months; Nil after.Is this NFO good to invest in?
That depends on your goals and existing holdings; this article does not recommend investing.What is the benchmark?
The CRISIL Hybrid 50+50 Moderate Index.Can I start a SIP during the NFO?
Yes, SIP registration is open during the NFO period.How is this different from a regular index fund?
An index fund tracks one index; this FOF shifts between several passive equity and debt schemes.
