ICICI Prudential Active Momentum NFO: The new fund offer (NFO) of ICICI Prudential's Active Momentum Fund, a new open-ended equity scheme that aims to capture opportunities arising from consistent price and earnings trends in the stock market, opened on Tuesday, July 8, and will remain open for subscription until July 22, 2025.

ICICI Prudential Active Momentum NFO details

The active momentum fund is an open-ended equity scheme following a momentum theme and is benchmarked against the Nifty 500 TRI. The minimum application amount during the NFO is Rs 5,000, with additional investments allowed in multiples of Re 1.

An exit load of 1 per cent will be applicable if units are redeemed within 12 months from the date of allotment. However, no exit load is charged for redemptions made after 12 months.

ICICI Prudential Active Momentum Fund: Who are fund managers?

The fund will be managed by Manasvi Shah, with Sharmila D’silva handling overseas investments.

ICICI Prudential Active Momentum Fund: SIP investment details

Investors can choose to invest through Systematic Investment Plans (SIPs) with flexible frequencies such as daily, weekly, monthly, quarterly, semi-annually, or annually. SIP in the fund required a minimum amount of Rs 1,000.

Fund's salient features

The momentum fund comes with several features. Here is the list:

• Flexibility across sectors: The fund can invest in any sector where momentum emerges
• Multi-style approach: The strategy naturally pivots depending on prevailing market conditions
• All-cap exposure: Momentum opportunities are explored across large, mid, and small-cap segments
• Hybrid investment style: A mix of top-down and bottom-up approaches is used in portfolio construction

Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC stated that we aim to approach momentum fundamentally by focusing on earnings and estimates momentum, complemented by price momentum.

India’s equity market is diverse, with stocks and sectors displaying varied earnings trends at different points in time, and our scheme aims to capitalize on these trends, Naren said.

What is momentum investing?

Momentum investing is a strategy that aims to benefit from the continuation of existing market trends, such as price or earnings trends. It is built on the belief that recent winners in the stock market are likely to continue performing well, and involves holding securities that show strong upward momentum and exiting those that display negative trends, allowing investors to potentially ride positive market movements while minimizing exposure to underperforming assets.