ICICI Pru MF has launched Flexicap Fund NFO that would open for subscription on 28th June, 2021. It’s an open-ended fund that invests across market capitalization of stocks i.e., large caps, mid-caps, and small caps. A single flexicap fund itself can act like a diversified portfolio. Should you invest in ICICI Prudential Flexicap NFO? What are the risk factors an investor should consider before investing in such flexicap funds?
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ICICI Prudential Flexicap Fund NFO Details
ICICI Prudential Flexi-cap Fund new fund offer would open for subscription on Monday, 28th June, 2021 and closes on Monday, 12th July, 2021. This is an open-ended mutual fund scheme. Here are the NFO issue details.
| Scheme Opens | 28-Jun-21 |
| Scheme Closes | 12-Jul-21 |
| Scheme reopens for continuous purchase/sale | After 5 working days from closure |
| Minimum Lumpsum | Rs 5,000 |
| Minimum SIP | Rs 100 for 6 months |
| NAV of the fund | Rs 10 during NFO period |
| Entry Load | Nil |
| Exit Load | < 1 Year – 1%, otherwise nil |
| Risk | Very High Risk |
| Max expense Ratio (TER) | 2.25% |
| Benchmark | S&P BSE 500 TRI |
ICICI Prudential Flexicap Fund SID Link
What is the investment objective of ICICI Prudential Flexicap Fund NFO?
To generate long-term capital appreciation by investing predominately in equity & equity related instruments across market capitalization.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
What is the allocation pattern in this fund?
This fund investment pattern is as follows:
Why to invest in the ICICI Prudential Flexicap Fund NFO?
Here are a few reasons to invest in this fund.
1) This flexicap fund would invest in large cap, Midcap and small cap which can help investors for diversification.
2) While investment in large cap would provide stable returns, investment in midcap and small cap funds would provide opportunity to invest in multibagger stocks that can generate high returns.
Major risk factors you should consider before investing in such funds
One should consider some of these risk factors / negative factors before investing.
1) This scheme would invest in small cap and midcap stocks. While such stocks can provide high returns in the long term, these are high risk. There is also less liquidity for midcap and small cap stocks compared to large cap stocks.
2) This mutual fund would invest up to 35% in debt instruments which have turned to be riskier these days.
3) This mutual fund would invest up to 10% in REITs and InvITs which are high risk.
Performance of existing Flexicap Funds
Here is the performance of existing flexicap funds in India. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.
| Fund Name | 3 Yrs | 5 Yrs | 10 Yrs |
|---|---|---|---|
| Parag Parikh Flexi Cap Fund | 20.7% | 19.4% | – |
| PGIM India Flexi Cap Fund | 20.7% | 18.5% | – |
| DSP Flexi Cap Fund | 16.9% | 17.6% | 14.0% |
| UTI Flexi Cap Fund | 18.3% | 17.5% | 15.5% |
| Canara Robeco Flexi Cap Fund | 16.7% | 17.4% | 13.9% |
| JM Flexicap Fund | 13.6% | 16.6% | 13.1% |
| Aditya Birla Sun Life Flexi Cap Fund | 13.6% | 16.0% | 15.3% |
| Edelweiss Flexi Cap Fund | 13.2% | 15.6% | – |
| Kotak Flexicap Fund | 13.3% | 15.3% | 15.3% |
| HDFC Flexi Cap Fund | 13.8% | 14.9% | 12.5% |
| SBI Flexicap Fund | 13.2% | 14.6% | 14.9% |
| Union Flexi Cap Fund | 16.0% | 14.5% | – |
| Motilal Oswal Flexi Cap Fund | 7.8% | 13.3% | – |
| Franklin India Flexi Cap Fund | 13.0% | 13.0% | 14.4% |
| L&T Flexicap Fund | 9.7% | 12.6% | 12.2% |
| IDBI Flexi Cap Fund | 11.3% | 12.3% | – |
| HSBC Flexi Cap Fund | 9.8% | 12.0% | 12.9% |
| IDFC Flexi Cap Fund | 8.8% | 10.6% | 14.2% |
| LIC MF Flexi Cap Fund | 11.4% | 10.0% | 9.0% |
| Taurus Flexi Cap Fund | 7.2% | 9.2% | 9.1% |
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Should you invest in ICICI Prudential Flexicap Fund NFO?
ICICI Pru Flexicap Fund invests across market capitalization i.e., in large cap, midcap and small cap stocks. Such funds can act like diversification to investors, as they invest in stocks across market capitalizations. However, these funds would tend to perform better if invested in medium to long term. High risk investors can invest in this scheme from medium to long term perspective. If you don’t want to test with such new funds, you can opt for existing flex-cap mutual funds that have a proven track record.
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Hello Sir , thank you for providing valuable details . My question would be like .. are there any benefits for participating in NFO. Because if we take part in IPO there are changes of price hike while listing in Market. Could you please throw some light in this ….?
There are no additional benefits of investing in NFO. This is like investing in a mutual fund, however the NAV starts with zero and based on performance, you would get returns.