Icici Prudential Enhanced Dynamic Equity Fund

ICICI Prudential AMC Ltd.

Icici Prudential is a major asset management company in the country, focusing on bridging the gap between saving and investing and building long-term wealth for investors through a variety of easy and relevant investment solutions. The AMC is a joint venture between ICICI Bank and Prudential plc, one of the major financial services companies in the United Kingdom.

Fund Snapshot

Parameter	Details
Strategy Name	Enhanced Dynamic Equity Fund
Asset Manager	ICICI Prudential AMC Ltd (Alternates Division)
AIF Category	SEBI Registered Category III AIF
Asset Allocation Range	• Net Long Equity: 0% to 100% (Dynamically adjusted via derivatives) • Fixed Income & Cash: Remaining balance based on model signals
Core Filtration Framework	Price-to-Earnings (P/E), Price-to-Book (P/B), and Dividend Yield models combined with BMV stock screening.
Portfolio Concentration	Diversified core equity basket of 30 to 45 stocks.
Minimum Investment	₹1,00,00,000 (INR 1 Crore) as mandated by SEBI for AIFs.
Taxation Structure	Taxed completely at the fund level at the highest marginal rate; distributions to investors are fully post-tax.

As the market seems to turn more complex, the quest for alpha becomes increasingly difficult. Hence, niche products with distinctive approaches are likely to provide a way forward to manage the quantum of wealth for the elite.

This is where Alternative Investment Funds (AIFs) aim to plug-in the gaps. The Investment Managers are given greater flexibility to generate alpha and offer diversification of wealth through seamless accountability and transparency in the well-regulated alternative investment space.

ICICI Prudential Asset Management Company Limited (Investment Manager to Alternative Investment Funds/the AMC) is providing investment management services to Category II and Category III Alternative Investment Funds (AIFs) registered under SEBI (Alternative Investment Funds) Regulations, 2012.

Fund Manager

Nimesh Shah

Mr. Nimesh Vipinbabu Shah serves as our company's Managing Director and CEO.Mr. Nimesh Vipinbabu Shah serves as our company's Managing Director and CEO. He earned a bachelor's degree in commerce from the University of Bombay.He earned a bachelor's degree in commerce from the University of Bombay. He passed the final exam of the Institute of Chartered Accountants of India.He passed the final exam of the Institute of Chartered Accountants of India. He has over 31 years of experience in the banking and financial services industry.He has over 31 years of experience in the banking and financial services industry. He was elected chairperson of the Association of Mutual Funds in India ("AMFI") on October 12, 2018. He is currently a director at AMFI and a member of the ICICI Foundation for Inclusive Growth's governing council.He was elected chairperson of the Association of Mutual Funds in India ("AMFI") on October 12, 2018. He is currently a director at AMFI and a member of the ICICI Foundation for Inclusive Growth's governing council. He was named "India CEO of the Year" at the Asia Asset Management 2023 Best of the Best Awards, "Best Asset Management CEO India 2017" at the Global Banking & Finance Awards 2017, and "India CEO of the Year" at the Asia Asset Management 2014 Best of the Best Awards.He was named "India CEO of the Year" at the Asia Asset Management 2023 Best of the Best Awards, "Best Asset Management CEO India 2017" at the Global Banking & Finance Awards 2017, and "India CEO of the Year" at the Asia Asset Management 2014 Best of the Best Awards.

Frequently Asked Questions

1. How does the 0% to 100% net equity range alter asset allocation during peak market valuations? +

When valuation models show the market is heavily overvalued, the fund cuts its net equity exposure toward the 0% floor by shorting index futures against its stock holdings. This shifts the risk profile toward cash and debt equivalents, shielding investor capital from the impact of an impending market correction.

2. What role do quantitative P/E and P/B data models play in daily fund management? +

The fund uses a rules-based quantitative model tracking trailing Price-to-Earnings and Price-to-Book ratios to remove human bias from asset allocation. The model generates systematic buy signals when market ratios are low and sell signals when ratios climb, forcing disciplined rebalancing.

3. How does a 30-to-45 stock concentration limit stock-specific risk in this fund? +

Spreading equity assets across up to 45 companies balances out the performance contribution of individual holdings. This diversification ensures that a sudden drop in a single stock's price will not derail the overall portfolio, matching the fund's objective of delivering steady risk-adjusted returns.

4. Why does the fund use derivatives instead of selling physical stocks to cut equity risk? +

Selling physical stock positions triggers heavy transaction costs and immediate tax liabilities. By shorting index futures to trim net equity exposure, the fund manager instantly lowers market risk without disturbing the core underlying stock portfolio, preserving capital efficiency.

5. What does fund-level taxation at the highest marginal rate mean for an investor's cash flow? +

Because the fund pays all income and capital gains taxes at the maximum marginal rate before distributing returns, the money credited to the investor's account is completely net of tax. This simplifies personal accounting because the investor does not need to declare or pay further taxes on these gains.

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ICICI Prudential AMC Ltd.

Fund Snapshot

As the market seems to turn more complex, the quest for alpha becomes increasingly difficult. Hence, niche products with distinctive approaches are likely to provide a way forward to manage the quantum of wealth for the elite.

Fund Manager

Nimesh Shah

Frequently Asked Questions

Get In Touch

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