ICICI Prudential, Wealth Company launch NFOs: Dynamic asset allocation vs multi-cap strategy

Mutual fund investors have two new fund offers (NFOs) to consider this week, with ICICI Prudential Mutual Fund and The Wealth Company Mutual Fund launching schemes with very different investment approaches. One aims to dynamically manage equity and debt exposure through passive funds, while the other will actively invest across large-, mid- and small-cap stocks.

ICICI Prudential Dynamic Asset Allocation Passive FOF

ICICI Prudential Mutual Fund’s ICICI Prudential Dynamic Asset Allocation Passive FOF opened for subscription on August 26 and will close on September 9, 2026. The open-ended fund of funds will dynamically invest in passive equity- and debt-oriented schemes, with allocation decisions guided by the fund house’s in-house Equity Valuation Index (EVI).

The EVI considers price-to-earnings and price-to-book ratios, G-Sec-adjusted earnings and India’s market capitalisation relative to GDP. As of July 31, 2026, the EVI stood at 105.2, placing it in the model’s neutral zone.

On the equity side, the scheme can invest in passive funds tracking different market-cap segments, sectors and themes, along with factor-based strategies. Its debt portfolio can include target-maturity, constant-duration and constant-maturity index funds and exchange-traded funds.

The fund will consider interest-rate trends, expectations around Reserve Bank of India policy, the yield curve and the economic growth outlook while making decisions on debt duration.

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One feature of the fund structure is that rebalancing between equity and debt within the scheme does not trigger an immediate tax event for the investor each time the allocation changes. Investors managing equity and debt investments separately may otherwise incur tax when selling units to shift money between schemes.

The minimum investment during the NFO period is ₹1,000, with additional investments allowed in multiples of ₹1. The scheme has been assigned a “Very High” risk rating and will be benchmarked against the CRISIL Hybrid 50+50 – Moderate Index.

Investors can also use systematic investment plan (SIP), systematic withdrawal plan (SWP) and systematic transfer plan (STP) facilities. The scheme will be managed by Manan Tijoriwala, Sharmila D'Silva, Manish Banthia, Ritesh Lunawat and Nishit Patel.

The Wealth Company Multi Cap Fund

The Wealth Company Mutual Fund, part of Pantomath Group, opened its Multi Cap Fund NFO on August 27. The offer will close on September 10, with the scheme reopening for continuous transactions on September 21, 2026.

The open-ended equity scheme will invest across large-cap, mid-cap and small-cap stocks, with an indicative allocation range of 25%-50% in each segment. A multi-cap fund is required to maintain a minimum 25% allocation to each category.

Madhu Lunawat, Founder, Managing Director and CEO, The Wealth Company Mutual Fund, said, “Market capitalisation is a number, not an investment thesis. A company may be large today and have limited room to grow. A smaller company may have the opportunity to become tomorrow’s leader.”

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The fund will follow an active investment strategy combining bottom-up stock selection with an assessment of top-down structural trends. Its investment process will use an in-house screening framework and a private-equity-style approach to portfolio construction and due diligence.

The scheme will seek long-term capital appreciation through a diversified portfolio across companies and sectors. It will be managed by Chinmay Sathe and benchmarked against the NIFTY 500 Multi Cap 50:25:25 TRI.

The minimum initial investment is ₹1,000. SIPs will be available across daily, weekly, fortnightly, monthly and quarterly frequencies, with monthly SIPs starting at ₹250.

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