ICICI Prudential Mutual Fund has decided to stop accepting new investments in two of its fund-of-funds (FoF) schemes from January 27, 2026. The decision follows changes in regulatory guidelines and will place the schemes under a grandfathering process, meaning they will continue only for existing investors.
The two schemes affected are the ICICI Prudential Passive Multi-Asset Fund of Fund and the ICICI Prudential Global Advantage Fund of Fund. According to the asset management company (AMC), the structure and investment pattern of these schemes do not fully align with the Securities and Exchange Board of India’s (SEBI) updated framework for FoFs that invest in multiple underlying funds.
As part of this move, no fresh lump-sum investments, SIPs (Systematic Investment Plans), or STPs (Systematic Transfer Plans) will be allowed after the cut-off date. Applications received before 3 pm on January 23, 2026, will be processed as usual. Existing SIPs and STPs will be discontinued from February 5, 2026. In addition, the IDCW reinvestment option in both schemes will be shifted to an IDCW payout option.
While new inflows will stop, existing investors can continue to hold their units. They will also have the flexibility to redeem or switch out their investments at any time, including through Systematic Withdrawal Plans (SWPs). The AMC clarified that there will be no restriction on exits.
The Passive Multi-Asset FoF, launched in 2022, invests in a mix of domestic and international exchange-traded funds (ETFs) and index funds, offering exposure across equity, debt, and gold. The Global Advantage FoF focuses largely on overseas markets through international funds. Both schemes have attracted significant investor interest and assets over time.
ICICI Prudential AMC said the grandfathering will remain in place until the schemes are either merged with other suitable funds or wound up, in line with SEBI rules. This process can take up to three years.