The scheme will be renamed ICICI Prudential Aggressive Hybrid Active FOF and moved from the ‘Others – FOFs’ category to ‘Hybrid FOF (Domestic) – Aggressive Hybrid FOF’.
Why the change
The recategorisation follows a framework introduced by Securities and Exchange Board of India through industry body Association of Mutual Funds in India in February 2025, which requires existing fund of funds schemes with multiple underlying funds to align with defined categories and asset allocation norms.
Key changes in structure
Under the revised framework, the scheme’s asset allocation will shift to a more defined hybrid structure:
- Equity-oriented schemes: 65–80% (earlier 80–100%)
- Debt-oriented schemes: 20–35% (earlier 0–20%)
- Cash and money market instruments: up to 5% (unchanged)
The scheme will continue to invest primarily through other mutual fund schemes, maintaining its fund-of-funds structure.
Investment strategy and positioning
While the category changes, the fund will continue to follow a sectoral and thematic allocation strategy, with flexibility to allocate across market capitalisation segments based on valuations and macroeconomic factors.
The revised mandate also allows greater allocation to debt schemes across credit and duration, reflecting a more structured hybrid approach. The benchmark will change from Nifty 200 TRI to CRISIL Hybrid 35+65 Aggressive Index.
What remains unchanged
The fund’s core objective of long-term capital appreciation remains intact, and it will continue to dynamically allocate across themes and sectors through underlying schemes. Taxation rules applicable to FoFs also remain unchanged.
Exit option for investors
Investors have been given an exit window without exit load from March 19 to March 31. The fund house clarified that this option is discretionary and not mandatory.
All other features of the scheme, apart from those specified in the addendum, will remain unchanged.
First Published:Â Mar 29, 2026 10:37 AM IST