ICICI Prudential MF bets big on India’s giants with new Conglomerate Fund NFO

ICICI Prudential Mutual Fund has announced the launch of its latest thematic equity offering — ICICI Prudential Conglomerate Fund, an open-ended equity scheme designed to capture opportunities within India’s largest promoter-led business groups. The New Fund Offer (NFO) opened on October 3, 2025, and will close on October 17, 2025.

The scheme focuses on India’s conglomerates—business groups with at least two listed companies across diverse sectors. Backed by strong promoters and diversified operations, these conglomerates are seen as resilient structures capable of navigating global volatility, managing cyclical downturns, and capturing long-term growth opportunities across industries.

Speaking on the launch, Sankaran Naren, Executive Director and CIO, ICICI Prudential AMC, said: “India’s leading business groups have shown remarkable ability to reinvent themselves across decades, whether in retail, telecom, or future-ready areas like renewable energy and semiconductors. They combine scale with vision, and resilience with adaptability. Through this fund, we aim to capture that strength and offer investors a theme that mirrors India’s evolving growth story.”

Why conglomerates?

According to ICICI Prudential AMC, conglomerates offer structural advantages that combine resilience with growth:

Deep pockets and strong balance sheets: High operating cash flows support working capital and expansion.

Lower cost of capital: Strong credit ratings and access to multiple funding sources lower borrowing costs.

Economies of scale: Shared resources, cross-sector synergies, and talent retention boost efficiency.

Forward and backward integration: Expansions across the value chain—from logistics to finance—help reduce costs and stabilize supplies.

Ability to manage downcycles: Diversified businesses across sectors provide stable cash flows and enable acquisitions during downturns.

Presence in sunrise sectors: Conglomerates are expanding into renewable energy, electric mobility, and semiconductors, positioning themselves for the future.

Why now?

The timing of the launch reflects both domestic and global market realities. Rising trade barriers, supply chain disruptions, and high borrowing costs are adding pressure to global growth. Diversified business groups are considered better equipped to withstand such volatility.

Data also shows conglomerates’ growing weight in Indian equities. Their share in the Nifty 100 index has steadily risen, reflecting increasing dominance in India’s corporate landscape. Historically, they have shown resilient earnings and an ability to consolidate market share across cycles—whether during liquidity crises, infrastructure slowdowns, or telecom disruptions.

Investment strategy

The ICICI Prudential Conglomerate Fund will invest in an investment universe of 71 conglomerate groups comprising around 240 companies across sectors. The fund has the flexibility to invest across market capitalisations—large, mid, and small caps—enabling it to capture opportunities across the economic spectrum.

The portfolio strategy will combine structural growth stories with cyclical opportunities, providing investors a chance to participate in India’s long-term corporate evolution.

The scheme will be managed by Lalit Kumar and benchmarked against the BSE Select Business Groups Index. The minimum application amount during the NFO period is Rs 1,000.

Peer landscape

ICICI Prudential’s new offering enters a growing thematic category where at least one peer fund is already operational. Aditya Birla Sun Life Conglomerate Fund, launched in December 2024, is one such scheme that focuses on India’s most influential business groups.

As of October 2025, the fund manages Rs 1,606 crore in assets with a NAV of Rs 10.56. Since inception, it has delivered 5.39% returns, modestly outperforming its benchmark BSE 500 TRI (3.35%).

The fund’s portfolio leans heavily on Reliance Industries, Mahindra & Mahindra, and Larsen & Toubro, reflecting the dominance of large conglomerates. Top 10 holdings make up nearly 39% of total assets, while sector allocation is tilted towards consumer discretionary (22.1%), materials (21.2%), energy (15.9%), and industrials (15.8%).

Top 10 Holdings

Company                   Sector                      Holding (%)

Reliance Industries    Energy & Utilities    15.91
Mahindra & Mahindra    Consumer Discretionary    7.69
Larsen & Toubro    Industrials    7.18
Bajaj Finserv    Financial    4.43
Tech Mahindra    Technology    3.52
Tube Investments of India    Consumer    3.16
Trent Ltd.    Consumer    3.13
Grasim Industries    Materials    3.05
Bajaj Finance    Financial    2.84
Adani Enterprises    Materials    2.80

Performance so far has been steady, but analysts caution that conglomerate-focused funds carry concentration risk, making them more suited for long-term, high-risk investors willing to ride out market cycles.

Investor perspective

With the ICICI Prudential Conglomerate Fund, investors get exposure to India’s largest business houses across sectors, combining stability with growth potential. In today’s environment of economic uncertainty, conglomerates are viewed as relatively safer bets due to their diversification and ability to expand into future growth areas.

However, industry experts point out that like all thematic funds, this scheme carries higher risk due to its concentrated focus. Investors should evaluate their risk appetite and consider this as part of a diversified portfolio.

Conclusion

By launching the ICICI Prudential Conglomerate Fund, ICICI Prudential AMC is offering investors an opportunity to participate in India’s most powerful business groups, which continue to drive corporate India’s growth story. With flexibility to invest across market caps and sectors, the fund aims to provide both stability and long-term wealth creation potential.

The success of this fund, however, will depend on execution and the performance of India’s conglomerates in navigating both domestic opportunities and global headwinds.

Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.