ICICI Pru Launches Flexicap Fund NFO – Review

ICICI Pru Launches Flexicap Fund NFO – ReviewICICI 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?

Also Read: Invest in these 5 funds if you are looking for steady income

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%

Also Read: Top 10 Best Mutual Funds to invest in 2021

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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Suresh KP

11 comments

  • ANAND RAO

    PARAG PARIKH MF BACKGROUND AND ADVISE REGARDING INVEST IN THIS MF

  • Hari Krishnan

    Hi Suresh, allow me to express my gratitude for the valuable advise you provide through your website. I am from a small section of investors who cannot do SIPs but only one time purchases. I have found valuations to be very high in the market, is it worthwhile to wait for the market to cool down a bit before investing in this NFO or any NFO of similar kind (I kind of skipped the Birla Multicap just because of that) ? What do you think, thanks in advance, Hari

    • Hari, There are many investors like you, don’t worry. If you are long term investor, keep investing in regular basis instead of thinking about market situatoin. If you have lumpsum money, first park in liquid fund and do systematic tranfer plan to an equity fund. This way you would still invest in lumpsum, but investment in equity mfs would happen like SIP mode.

  • SACHIN

    Thank you information !!

  • Mr. Narayanaswami Kalyanaraman

    Is this scheme suitable for senior citizens please

    • Mr.Narayanaswami, Flexicap mutual funds are moderate to high risk. One should invest for medium to long term of 5-10 years. If you fall in this category, you can invest, else you can avoid.

  • Rajesh

    Sir,

    Thanks for all the good information you are providing us ! God bless you sir.

    Regards

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