News ICICI Prudential Passive Multi-Asset Fund of Fund to be Grandfathered from January 27, 2026ICICI Prudential Passive Multi-Asset Fund of Fund to be Grandfathered from January 27, 2026
ICICI Prudential Mutual Fund will grandfather its Passive Multi-Asset Fund of Fund from January 27, 2026, following SEBI's new FoF framework. The Rs 1,415 crore AUM fund will stop new investments but maintain redemption facilities. The scheme, launched in 2022 with 71% domestic allocation and 25.5% overseas exposure, will be merged or wound up within three years.
*this image is generated using AI for illustrative purposes only.
ICICI Prudential Mutual Fund has announced that its Passive Multi-Asset Fund of Fund will be grandfathered effective January 27, 2026, following regulatory changes mandated by the Securities and Exchange Board of India (SEBI). The decision impacts the fund's operations and investor access, marking a significant transition for the scheme launched in 2022.
Regulatory Framework and Grandfathering Decision
The grandfathering decision stems from SEBI's February 6, 2025 letter to the Association of Mutual Funds in India (AMFI) regarding the framework for launching Fund of Fund (FoF) schemes with multiple underlying funds. SEBI, through a subsequent letter dated January 20, 2026, permitted the grandfathering of the scheme as its existing asset allocation and investment objective do not align with any categories prescribed under the new framework.
| Parameter: | Details |
|---|---|
| Grandfathering Date: | January 27, 2026 |
| SEBI Permission Date: | January 20, 2026 |
| Merger/Wind-up Timeline: | Within 3 years from January 20, 2026 |
| Current AUM: | Rs 1,415 crore |
Impact on Investment Operations
Starting January 27, 2026, the scheme will cease accepting fresh investments through multiple channels. New lump sum purchases, Systematic Investment Plans (SIPs), and Systematic Transfer Plans (STPs) will be discontinued. Additionally, existing SIPs and STPs, including those under the Income Distribution cum Capital Withdrawal (IDCW) reinvestment option and other special investment facilities, will be terminated effective February 5, 2026.
The IDCW reinvestment option will be automatically converted to the IDCW payout option as part of these operational changes. However, investors retain full access to redemption and switch-out facilities, ensuring liquidity remains available.
Continued Services for Existing Investors
Despite the restrictions on new investments, several investor services will remain operational. Existing Systematic Withdrawal Plans (SWPs) and STP-out facilities will continue functioning normally. The grandfathering process will not impact investors' ability to redeem units or execute switch-out transactions, maintaining flexibility for portfolio management.
Fund Portfolio and Investment Strategy
The fund, launched in 2022, maintains a diversified investment approach across multiple asset classes. Its investment strategy focuses on a mix of domestic equity and debt ETFs/index funds, global equity ETFs, and gold investments.
| Asset Category: | Allocation (as of December 31, 2025) |
|---|---|
| Domestic Equity and Debt ETFs: | 71% |
| Overseas ETFs: | 25.5% |
| Short-term Debt and Cash: | Remaining allocation |
The fund's multi-asset approach reflects its objective to provide diversified exposure across domestic and international markets while incorporating precious metals as a portfolio component. With an AUM of Rs 1,415 crore, the scheme represents a significant investment vehicle that will transition under the new regulatory framework while maintaining its core investment philosophy during the grandfathering period.
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