# ICICI Prudential rolls out a new hybrid fund that splits money between equity and debt for balance

> ICICI Prudential Asset Management Company has launched a Balanced Hybrid Fund, with its New Fund Offer open from June 30 to July 14, allowing investments starting at just Rs 500.

**Type:** article · **Category:** Money · **Published:** 2026-07-04 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/icici-prudential-laya-naya-haibrida-phnda-ikviti-aura-deta-ke-mishrana-se-ritarna-ke-satha-sthirata-ka-dava-4731 · **Language:** English
**Tags:** ICICI Prudential, Mutual Fund, Balanced Hybrid Fund, NFO Investment, Equity Debt Fund, Investment Opportunities

Investors looking for decent returns without taking on heavy risk now have a new option to consider. ICICI Prudential Asset Management Company has launched its new Balanced Hybrid Fund. The scheme's New Fund Offer, or NFO, opened on June 30 and will close on July 14, giving interested investors only a short window to get in at the initial offer price.

## How the scheme is structured
This is an open-ended balanced scheme that will invest only in equity and debt instruments. There is no room for arbitrage strategies in this fund. According to the fund house, the scheme's entire purpose is to deliver capital appreciation along with regular income to investors through an active investment strategy.

## The strategy behind equity and debt investments
On the equity side, the fund managers will invest across different market capitalisations and sectors. On the debt side, investment opportunities will be chosen based on duration, AAA rated papers, government securities and credit quality. The portfolio will be reviewed from time to time based on prevailing market valuations and conditions. How much money goes into equity versus debt will depend on indicators such as corporate earnings and bond yields.

## What the CIO had to say about the strategy
Shankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management Company, said the Balanced Hybrid Fund has been designed specifically to strike the right balance between equity and debt allocation. Based on current market conditions, between 40 and 60 percent of the portfolio will be allocated to each of equity and debt. Naren said this balanced approach should work well in the current environment while also helping investors generate income and build wealth over the long term.

## Why mixing both asset classes helps
Equity has historically created substantial wealth for investors over long periods, though it comes with volatility and periodic declines. Debt based investments, on the other hand, tend to deliver more stable returns over time and are generally seen as more dependable than equity. Since equity and debt typically do not move in the same direction at the same time, combining the two in a single portfolio can improve the overall investment experience. Historical data shows that mixed equity and debt portfolios have shown smaller losses during equity downturns while also delivering better returns than a pure debt portfolio during normal market conditions.

## Minimum investment amount
Investors can enter this scheme with a minimum of Rs 500. After that, additional investments can be made in multiples of Re 1. The ICICI Prudential Balanced Hybrid Fund will be available in two plans, Direct and Regular. The scheme's benchmark is the CRISIL Hybrid 50+50 Moderate Index.

## How this differs from other SEBI hybrid categories
Under this scheme's structure, both equity and debt receive an allocation of 40 to 60 percent each, with no separate allocation set aside for arbitrage. This is what sets SEBI's Balanced Hybrid category apart from the other two hybrid categories. The Aggressive Hybrid category requires 65 to 80 percent in equity and 20 to 35 percent in debt, while the Conservative Hybrid category requires 10 to 25 percent in equity and 75 to 90 percent in debt. The Balanced Hybrid Fund, in effect, offers a middle path between these two categories.

## What this means for you
If you are looking to start investing with limited risk, this launch is directly relevant to you.

- **For investors:** The scheme allows entry with as little as Rs 500, making it accessible for smaller investors as well.
- **Mind the deadline:** The NFO closes on July 14, after which the initial offer pricing window will no longer be available.
- **Risk clarity:** Since the fund invests in both equity and debt, it is not risk-free but is designed to balance risk rather than eliminate it entirely.

## Questions & Answers

### 1. When does the ICICI Prudential Balanced Hybrid Fund NFO open and close?
The New Fund Offer opened on June 30 and will close on July 14.

### 2. What is the minimum investment amount for this scheme?
Investors can start with a minimum of Rs 500 and add further investments in multiples of Re 1.

### 3. Does this scheme allow arbitrage?
No, arbitrage is not permitted in this scheme, it invests only in equity and debt instruments.

### 4. How will equity and debt be allocated in this fund?
Based on prevailing market conditions, 40 to 60 percent of the portfolio will be allocated to each of equity and debt.

### 5. What is the benchmark for this scheme?
The scheme's benchmark is the CRISIL Hybrid 50+50 Moderate Index.

### 6. How is the Balanced Hybrid Fund different from SEBI's Aggressive and Conservative Hybrid categories?
The Aggressive Hybrid category requires 65-80% equity and 20-35% debt, the Conservative Hybrid category requires 10-25% equity and 75-90% debt, while the Balanced Hybrid category allocates an equal 40-60% to each.

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