1 Fund, 4 Assets: Is Multi-Asset FOF Right for You?

ICICI Prudential has launched a new fund that invests across equity, debt, gold, and silver using a fund-of-funds structure. It aims to reduce risk by spreading your money across asset classes that don't always move together.

Here's what happened: ICICI Prudential MF is launching a Multi-Asset Fund of Funds investing across equity, debt, gold, and silver under one scheme.. The new fund uses a fund-of-funds (FOF) structure, meaning it invests in existing mutual fund schemes rather than directly in stocks or bonds.. The NFO subscription window opens June 30 and closes July 14, giving investors a limited time to apply at face value..

What you should do: Compare this FOF's expense ratio against direct multi-asset funds — FOFs typically carry a double-layer cost that eats into returns.. Check your existing portfolio: if you already hold separate equity SIPs, gold ETFs, and debt funds, a bundled FOF may add overlap rather than diversification.. If you are a first-time investor wanting one-stop diversification, consult a SEBI-registered advisor before the July 14 NFO deadline to decide if this fits your goal..

FOFs pay no indexation benefit on debt gains and are taxed as equity funds only if equity exposure stays above 65% — confirm the exact allocation before investing to avoid a surprise tax bill.