ICICI Prudential Mutual Fund has launched its latest equity offering — ICICI Prudential Active Momentum Fund, open for subscription from 8th July to 22nd July 2025. This open-ended scheme aims to capitalise on market momentum by investing in companies demonstrating strong price trends. Designed for aggressive investors, the fund intends to identify and ride sustained upward trends to generate long-term capital appreciation.
Key NFO Details
| Particulars | Details |
| Fund Name | ICICI Prudential Active Momentum Fund (Direct – Growth) |
| NFO Period | 08 July 2025 to 22 July 2025 |
| Allotment Date | 25 July 2025 |
| Category | Equity – Strategy |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | NIFTY 500 TRI |
| Minimum Investment | ₹5,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 1% if redeemed within 12 months |
Investment Objective
The scheme seeks to generate long-term capital appreciation by investing in equity and equity-related instruments of companies that exhibit strong momentum characteristics. This strategy is based on the premise that stocks that have performed well in the recent past tend to continue their performance for some time.
How Does This Compare with the Category?
While the fund is newly launched, momentum-based strategies have gained popularity for their ability to deliver alpha in trending markets. Below are the average returns of the broader equity strategy category over different time frames:
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 7.94% |
| 3 Years | 18.82% |
| 5 Years | 19.07% |
| 7 Years | 18.74% |
| 10 Years | 16.33% |
| 15 Years | 15.44% |
| Since Inception | 14.45% |
If the fund’s active approach succeeds in capturing momentum effectively, it could outperform the passive benchmarks and deliver superior long-term returns.
Should You Invest in This NFO?
Consider this NFO if:
- You are seeking high-growth potential through a momentum-based equity strategy.
- You are comfortable with short-term volatility and aim for long-term capital gains.
- You believe in quantitative models and active stock rotation based on performance trends.
- You are looking to diversify beyond conventional large-cap or sector-based funds.
However, be aware:
- Momentum strategies can underperform during sideways or choppy markets.
- Being an actively managed strategy, outcomes may vary significantly based on execution.
- As with all NFOs, there is no past performance data for this fund.
About ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund is among India’s top fund houses with an AUM of ₹9,83,726 crore as of June 30, 2025. Known for its wide suite of equity and hybrid offerings, the AMC has a strong track record in active fund management.
Notable performers from its equity basket include:
| Fund Name | 1Y Return | 5Y CAGR |
| ICICI Prudential Infrastructure Fund | 3.63% | 38.27% |
| ICICI Prudential Commodities Fund | 0.37% | 36.14% |
| ICICI Prudential Smallcap Fund | 1.8% | 33.85% |
| ICICI Prudential India Opportunities | 8.54% | 33.26% |
| ICICI Prudential Manufacturing Fund | -0.1% | 31.06% |
The AMC’s history of managing sector and thematic strategies enhances confidence in its new quantitative momentum offering.
Final Thoughts
The ICICI Prudential Active Momentum Fund NFO offers an opportunity for investors looking to harness market trends through a quantitative momentum strategy. With a high-risk, high-reward profile, this fund is best suited for those with a long-term horizon and a strong appetite for equity volatility.
Before investing, review the scheme information document thoroughly and ensure it aligns with your financial goals and risk tolerance.
