🚀 ICICI Prudential Active Momentum Fund – Capture the Power of Market Trends!


NFO Period: July 8 to July 22, 2025
Fund Type: Open-ended equity scheme based on momentum investing

🔍 What is ICICI Pru Active Momentum Fund?

ICICI Prudential Active Momentum Fund is a new equity mutual fund that follows a momentum investing strategy—focusing on companies with strong upward trends in price and earnings. The fund intends to invest in businesses that are already showing market strength and upward earnings revisions, while applying filters for quality, risk, and governance.

This strategy enables the fund to dynamically adapt to changing market conditions by investing in sectors and stocks showing high potential based on recent performance indicators.

📈 Why Momentum Investing?

Momentum investing revolves around the concept of "buying winners"—stocks that are gaining in value and are expected to continue doing well. This fund uses:

  • Price momentum: Stocks that show upward price trends

  • Earnings momentum: Stocks where analysts have upgraded earnings estimates

  • Risk and governance checks: To maintain a quality-driven approach

The aim is to ride the wave of current market trends with a scientific, model-driven approach.

🗃️ Portfolio & Allocation Strategy

  • Diversified portfolio of ~50 high-momentum stocks

  • Invests across market caps (large, mid, small) and sectors

  • Up to 35% allocation allowed to international equities, including ADRs/GDRs

  • Includes exposure to debt instruments, REITs, InvITs, and derivatives for hedging

This active and flexible approach allows the fund to rotate holdings based on emerging momentum signals.

🔑 Key Features

Particular Details
Minimum Investment ₹5,000 (initial), ₹1,000 (additional)
Benchmark Nifty 500 TRI
Exit Load 1% if redeemed within 12 months; nil thereafter
Risk Category Very High
Fund Manager Manasvi Shah

🎯 Who Should Consider This Fund?

This fund could be a great fit for:

  • Investors looking for higher growth opportunities through equity

  • Those with a long-term horizon (3+ years)

  • Individuals comfortable with higher volatility and risk

  • Investors who believe in trend-following investment models

It is not suitable for conservative investors or those needing capital protection in the short term.

⚠️ Important Considerations

  • Momentum strategies are cyclical—returns may vary depending on market phases

  • Exposure to foreign stocks and derivatives adds to complexity and risk

  • Requires active monitoring and is best suited for informed or guided investors

📆 Important Dates & How to Invest

  • NFO Start: July 8, 2025

  • NFO End: July 22, 2025

  • Available for both lump sum and SIP investments

You can invest through official ICICI Prudential channels, financial advisors, or popular investment platforms.

📝 Final Thoughts

The ICICI Prudential Active Momentum Fund is designed for bold investors who want to leverage the power of momentum investing in a structured and professional manner. With its smart, data-driven strategy and a flexible mandate, the fund aims to deliver long-term capital appreciation while actively adapting to evolving market trends.

If you're an investor seeking higher returns and are willing to ride short-term volatility, this could be an interesting thematic opportunity to consider.

Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future results.

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