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ICICI Prudential's NFO clocks highest-ever collection among open-ended equity funds

The Flexicap Fund from ICICI Prudential MF had drawn over four lakh retail investors, who were brought in by more than 15,000 distributors.

July 13, 2021 / 08:56 PM IST
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ICICI Prudential's just closed new fund offering (NFO) created a record with a collection of close to Rs 9,500 crore. This is the highest-ever NFO collection among open-ended equity funds in the history of mutual funds industry in India.

Over four lakh retail investors applied to the ICICI Prudential Flexicap Fund, said a spokesperson of the mutual fund company. "This would not have been possible without the support of more than 15,000 distributors spread across the country who helped us in taking the product to every discerning investors," the spokesperson added.

The previous record for highest-ever collection by open-ended equity fund was held by Reliance Natural Resources Fund, which had collected around Rs 5,660 crore.

In 2020, the Securities and Exchange Board of India (SEBI) issued a diktat asking fund houses to make their multi-cap schemes true-to-label. They were asked to invest at least 25 percent of their assets each in large, mid and small-cap stocks. There was no such restriction earlier.

Later, SEBI allowed fund houses to have a new flexi-cap category with no rigid market capitalisation based investment mandate.

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Also Read | How mutual funds worked behind the scenes to comply with SEBI multi cap funds’ order

Of a total of 35 schemes originally in the category, 25 became flexi-cap funds. ICICI Prudential AMC too had a multi cap fund (ICICI Prudential Multicap Fund), which chose to continue in the multi-cap category. ICICI Prudential, therefore, had a gap in the newly created flexi cap category. Hence it now launched a new scheme, which has garnered record inflows.

"The record NFO collection is no surprise given the process oriented approach and robust performance track record the fund house enjoys across asset classes," the company's spokesperson added.
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