ICICI Prudential Mutual Fund to Grandfather Two Fund-of-Funds Under SEBI Framework
ICICI Prudential Mutual Fund is set to grandfather two of its Fund of Funds (FoFs): the ICICI Prudential Passive Multi-Asset Fund of Fund and the ICICI Prudential Global Advantage Fund. This move, effective from January 27, 2026, follows recent regulatory updates by SEBI, ensuring these schemes align with the new framework.
Details of the Grandfathering
– Start Date: Grandfathering takes effect from January 27, 2026.
– Reason for Grandfathering: As per SEBI’s directive to AMFI dated February 6, 2025, the existing asset allocations and investment objectives of these schemes do not fit within the specified categories outlined in the new framework.
– Future of the Schemes: Both funds will either merge or wind down three years post-January 20, 2026.
Important Notes for Investors
Investors are advised to take note of the following details regarding each fund:
ICICI Prudential Passive Multi-Asset Fund of Fund
– Subscription Changes: No new subscriptions will be accepted through lump sum investments or fresh Systematic Investment Plans (SIPs) starting January 27, 2026.
– Existing Transactions: Purchase or switch-in requests timestamped before 3:00 PM on January 23, 2026, will still be processed at the applicable NAV.
– Discontinuation of Products: All existing SIPs or Systematic Transfer Plans (STPs), along with IDCW reinvestment options, will be discontinued after February 5, 2026. The IDCW reinvestment option will switch to IDCW Payout.
– Redemption Options: Redemptions and switch-outs will continue as normal, with no impact from the grandfathering.
ICICI Prudential Global Advantage Fund (FoF)
– Similar Subscription Changes: Like the Passive Multi-Asset Fund, new investments through SIP or STP registrations will no longer be accepted from February 5, 2026.
– Existing Subscriptions: New subscriptions have already been halted since August 13, 2024.
– Discontinuation of Products: Existing SIPs and STPs will also switch to IDCW Payout after February 5, 2026.
– Redemption Options: Redemptions and switch-outs remain unaffected by the grandfathering.
Conclusion
The grandfathering of the ICICI Prudential Passive Multi-Asset Fund of Fund and ICICI Prudential Global Advantage Fund under the recent SEBI framework allows investors to maintain their investments while adapting to the evolving regulatory landscape. All other features of the schemes, aside from the changes outlined, will remain unchanged. For further details, refer to the Scheme Information Document (SID) and Key Information Memorandum (KIM).
Stay informed about your investments in ICICI Prudential Mutual Fund as they navigate these regulatory amendments.