ICICI Prudential Launches Active Momentum Fund: Riding the Power of Market Trends
- Jai prakash
- 2 days ago
- 5 min read
ICICI Prudential Mutual Fund has launched its latest offering — ICICI Prudential Active Momentum Fund, an open-ended equity scheme designed to harness the power of momentum-based investing. This fund aims to identify and ride ongoing price and earnings trends across sectors and styles, providing investors a disciplined and data-driven path to potential long-term capital appreciation.
As markets continue to evolve, momentum investing has emerged as a strategy that combines behavioral finance insights with modern portfolio analytics. Let’s explore what this fund offers and why this may be the right time for such a launch.
🔍 What is Momentum Investing?
Momentum investing is a proven strategy that seeks to invest in stocks which have shown strong recent performance and are expected to continue their trend. It’s built on two key principles:
Price Momentum – Stocks showing consistent price uptrend over time
Earnings Momentum – Companies experiencing upward earnings revisions or strong financial results
The strategy automatically adapts to changing market styles—switching between value, growth, or quality, depending on what’s working in the market.
🌟 Why Now? Timing of the Launch Matters
This launch comes at a time when:
Indian equity markets are trading near all-time highs.
Earnings season is showing signs of revival and optimism.
Investors are increasingly aware of factor-based strategies like momentum.
July, in particular, has historically delivered positive returns in Indian markets, making it an ideal backdrop for launching a trend-following equity scheme.
🧠 ICICI Prudential’s Momentum Strategy
The fund uses a proprietary model that filters stocks based on:
✔ Strong and consistent earnings growth✔ Favorable price trends over different time frames✔ Fundamental strength and governance quality
It combines both top-down sector analysis and bottom-up stock selection to build a flexible, responsive portfolio.
📊 Real-World Examples of Momentum in Action
A leading paint company saw earnings grow +48% and stock price rise +129%, far ahead of broader indices.
IT Sector stocks surged following strong post-COVID digital demand and robust earnings.
A major NBFC delivered +347% return during stable interest rate cycles—highlighting the role of macro-driven momentum.
📋 Fund Snapshot
Feature | Details |
Scheme Name | ICICI Prudential Active Momentum Fund |
Type | Open-ended equity scheme following momentum theme |
Benchmark | Nifty 500 TRI |
NFO Period | July 8 – July 22, 2025 |
Fund Managers | Manasvi Shah & Sharmila D’silva (Overseas) |
Minimum Investment | ₹5,000 (initial), ₹1,000 (additional) |
Exit Load | 1% if redeemed within 12 months; Nil thereafter |
Plans/Options | Regular & Direct – Growth Option only |
SIP, STP, SWP | Available |
👤 Who Should Consider This Fund?
This fund may be suitable for:
Investors seeking long-term capital appreciation
Those who are comfortable with short-term volatility
Investors who understand market cycles and trends
Clients looking for tactical allocation opportunities within equity markets
🚫 Who Should Avoid This Fund?
This fund may not be suitable for:
Ultra-conservative investors looking for capital protection
Those seeking guaranteed or fixed returns
Investors with a very short-term investment horizon (less than 1 year)
Clients uncomfortable with sharp movements in NAV due to market reversals
Individuals not familiar with equity investing or factor-based strategies
It is important that investors understand that momentum strategies can be volatile and require patience and a minimum holding period of 3–5 years for optimal outcomes.
⚠️ Mutual Fund Disclaimer
ICICI Prudential Mutual Fund has launched its latest offering — ICICI Prudential Active Momentum Fund, an open-ended equity scheme designed to harness the power of momentum-based investing. This fund aims to identify and ride ongoing price and earnings trends across sectors and styles, providing investors a disciplined and data-driven path to potential long-term capital appreciation.
As markets continue to evolve, momentum investing has emerged as a strategy that combines behavioral finance insights with modern portfolio analytics. Let’s explore what this fund offers and why this may be the right time for such a launch.
🔍 What is Momentum Investing?
Momentum investing is a proven strategy that seeks to invest in stocks which have shown strong recent performance and are expected to continue their trend. It’s built on two key principles:
Price Momentum – Stocks showing consistent price uptrend over time
Earnings Momentum – Companies experiencing upward earnings revisions or strong financial results
The strategy automatically adapts to changing market styles—switching between value, growth, or quality, depending on what’s working in the market.
🌟 Why Now? Timing of the Launch Matters
This launch comes at a time when:
Indian equity markets are trading near all-time highs.
Earnings season is showing signs of revival and optimism.
Investors are increasingly aware of factor-based strategies like momentum.
July, in particular, has historically delivered positive returns in Indian markets, making it an ideal backdrop for launching a trend-following equity scheme.
🧠 ICICI Prudential’s Momentum Strategy
The fund uses a proprietary model that filters stocks based on:
✔ Strong and consistent earnings growth✔ Favorable price trends over different time frames✔ Fundamental strength and governance quality
It combines both top-down sector analysis and bottom-up stock selection to build a flexible, responsive portfolio.
📊 Real-World Examples of Momentum in Action
A leading paint company saw earnings grow +48% and stock price rise +129%, far ahead of broader indices.
IT Sector stocks surged following strong post-COVID digital demand and robust earnings.
A major NBFC delivered +347% return during stable interest rate cycles—highlighting the role of macro-driven momentum.
📋 Fund Snapshot
Feature | Details |
Scheme Name | ICICI Prudential Active Momentum Fund |
Type | Open-ended equity scheme following momentum theme |
Benchmark | Nifty 500 TRI |
NFO Period | July 8 – July 22, 2025 |
Fund Managers | Manasvi Shah & Sharmila D’silva (Overseas) |
Minimum Investment | ₹5,000 (initial), ₹1,000 (additional) |
Exit Load | 1% if redeemed within 12 months; Nil thereafter |
Plans/Options | Regular & Direct – Growth Option only |
SIP, STP, SWP | Available |
👤 Who Should Consider This Fund?
This fund may be suitable for:
Investors seeking long-term capital appreciation
Those who are comfortable with short-term volatility
Investors who understand market cycles and trends
Clients looking for tactical allocation opportunities within equity markets
🚫 Who Should Avoid This Fund?
This fund may not be suitable for:
Ultra-conservative investors looking for capital protection
Those seeking guaranteed or fixed returns
Investors with a very short-term investment horizon (less than 1 year)
Clients uncomfortable with sharp movements in NAV due to market reversals
Individuals not familiar with equity investing or factor-based strategies
It is important that investors understand that momentum strategies can be volatile and require patience and a minimum holding period of 3–5 years for optimal outcomes.
⚠️Disclaimer
Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.The information contained herein is for educational purposes only and should not be considered as investment advice or a solicitation to invest.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them Note: The above information has been sourced from the Scheme Information Document provided by ICICI Prudential AMC. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment) is the distributor of the mutual fund. Please consult your investment advisor before investing
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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