IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER^U

Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year

What is New Fund Offer (NFO)?

Meaning & Types of NFO

A New Fund Offer (NFO) refers to the launch of a new investment fund that is made available to investors for the first time. An NFO can be an attractive option if you are exploring new and upcoming investment opportunities. Let’s find out what NFOs are, and why they should be part of your investment strategy.

What is NFO? (New Fund Offer)

An NFO is a new fund scheme launched by a life insurance company that allows investors to subscribe to its units for the first time. It is not an existing fund but the initial offering of a fund that is created by fund houses to raise capital and attract new investors.

New Fund Offers in Life Insurance Plans

Life insurance plans also allow you to invest in NFOs. Unit-Linked Insurance Plans (ULIPs) offer a combination of life coverage^` and investment opportunities. These plans invest in various types of market-linked funds such as equity, debt and hybrid funds^{^}, and they also provide the option to invest in NFOs. Therefore, you not only gain exposure to market-linked investments but also ensure that your loved ones' financial interests are protected through life coverage^`.

New fund launch by ICICI Prudential Life Insurance
BSE 500 Momentum Value 50 Index Fund

ICICI Prudential Life Insurance is introducing the BSE 500 Momentum Value 50 Index Fund as part of its ULIP offerings. This is a pioneering fund in the industry that combines the principles of value and momentum investing. The passive equity fund option will follow the BSE 500 Momentum Value 50 ICICI Prudential Custom Index, which combines attractive valuation with positive price momentum.

Key benefits of the ICICI Pru BSE 500 Momentum Value 50 Index Fund

Here is how the ICICI Pru BSE 500 Momentum Value 50 Index Fund can add value to your ULIP portfolio.

Combines value with market confirmation

The index first looks for companies available at relatively attractive valuations. It then seeks positive price momentum as confirmation that market confidence may be improving.

Helps avoid two investment extremes

Opportunities across company sizes

Rules-based selection of 50 companies

Quarterly portfolio review

Passive and transparent approach

Adapts as opportunities change

An alternative approach during volatility

To explore whether the ICICI Pru BSE 500 Momentum Value 50 Index Fund fits your goals, you can select it from among the [30+ fund options] while investing in a new ICICI Pru ULIP, or switch to it within your existing policy, in line with your risk profile and investment horizon. The fund aims to follow the custom index, subject to tracking error. Investors should read the relevant product documents and understand the costs, risks and features before investing.

E/II/0999/2026-27

How does an NFO work?

NFO is available for a limited time, typically for around 15 days after its launch. During this period, the life insurance company offers the units of the new fund at a fixed price, usually set at ₹ 10 per unit. The insurer announces the details of the new fund at the time of launch, such as the fund’s objectives, so investors can decide whether or not it makes for a good investment for their goals.

After the offer period ends and the units are allotted to investors, the price of the units may fluctuate based on the fund's performance in the market.

Types of NFO

Below are the different types of NFOs:

Open-ended NFOs

Open-ended NFOs do not have a fixed maturity date. You can buy or redeem their units at any time. These funds are ideal for investors who want flexibility.

Close-ended NFOs

Close-ended NFOs are available for a fixed tenure and can only be bought or sold during the initial offer period. These funds are open for subscription only for a specified period when the scheme is launched.

Interval plans

Interval plans combine features of both open-ended and close-ended schemes. These NFOs allow investors to transact within a specific timeframe where you can buy and sell their units anytime you want.

Benefits of Investing in NFOs

Below are some benefits of investing in an NFO:

Affordable

NFOs are usually aimed to be affordable, with units typically priced at ₹ 10 per unit. This makes them an inexpensive investment for most investors. The minimum subscription amount for investing in an NFO can start from ₹ 500, so you can easily participate in a fund of your choice.

Experienced fund managers

NFOs are mutual funds that are managed by experienced fund managers who are experts in their fields. These professionals handle the fund’s investments and make all crucial decisions about asset allocation, entry and exit strategies, ensuring that your money is in safe hands.

Portfolio diversification

Mutual funds, including NFOs, invest in a wide range of securities, such as equities, bonds and cash. They also provide diversification within the same asset class. For instance, an equity mutual fund invests in stocks of several companies. Investing in NFOs can be a great way to diversify your portfolio and reduce risk.

Early-Stage Growth

Investing in an NFO allows you to participate in the early-stage growth of a fund. You can potentially benefit from its appreciation over time as the fund matures.

Things to consider before investing in an NFO

Below are a few things to consider before investing in an NFO:

Fund investment approach

Every mutual fund has a specific objective. The fund’s asset allocation, risk level and more are decided based on the fund's objective. Understanding the fund’s objective can help you assess whether investing in the NFO aligns with your financial goals and risk tolerance.

Investment horizon

You must ensure that the investment horizon of the NFO matches your own. Based on the fund’s objective and asset allocation, you can evaluate whether the fund is suitable for your short-term or long-term goals.

Fund Manager’s performance history

It is important to check the fund manager's track record managing the NFO, including the funds they have previously managed. This can give you an idea of their expertise and ability to meet the fund’s investment objectives.

Fees Structure

Mutual funds come with various fees, such as expense ratios, exit loads and taxes. Make sure to understand the fee structure of the NFO before investing, as these costs can impact your overall returns. You must also understand that while low associated costs can help you keep more of your rewards, it should not be the only criteria to select a fund.

Market Environment

Different types of funds react differently to market conditions. For example, equity funds invest in stocks primarily and can be more volatile. Before investing, you must assess the current market environment and determine how the fund may perform under prevailing economic conditions.

Liquidity

The liquidity of the NFO depends on whether it is open-ended or close-ended. Open-ended funds offer more flexibility for buying and selling units, while closed-ended funds have limited liquidity during the offer period. Assess your liquidity needs before making an investment.

Frequently Asked Questions - What is NFO?

How to Invest in an NFO?

You can invest in an NFO directly through an Asset Management Company (AMC) or via a life insurance company if you invest in a Unit-Linked Insurance Plan (ULIP).

What are the Benefits of NFO in ULIPs?

Investing in an NFO through a ULIP provides multiple benefits. NFOs in ULIPs are affordable. ULIPs also come with professional fund management, as they are handled by expert fund managers. NFOs within ULIPs can also provide growth potential through their diverse investment options, such as equity, debt or hybrid funds. Moreover, you get a life cover^` that safeguards your loved ones in your absence.

Can we withdraw money from NFO?

You cannot withdraw money during the NFO period itself. After the NFO period, withdrawals depend on the fund type. You can sell NFO units from an open-ended scheme at any time and withdraw your money. However, for closed-ended schemes, there is a maturity period, and you will need to wait before being able to sell and withdraw. Interval funds allow you to redeem your money during a specific period only. So, while you can withdraw your money, you need to plan your withdrawals according to the NFO you invest in.

How do you choose which NFO is best for investment?

You must assess your financial goals, risk appetite and liquidity needs before choosing the NFO that best fits your investment strategy. It is also advised to research about the AMC and evaluate the fund’s objectives.

What is the difference between NFO & IPO?

An NFO is a new mutual fund offer launched by an AMC, while an IPO is an Initial Public Offering where a private company offers its stock to the public for the first time by listing it on the stock exchange. NFOs are market-linked funds, whereas IPOs are individual stocks.

How do I stay updated about the launch of an NFO?

You can stay updated about the launch of an NFO by following different AMCs and financial news sources to get notifications about new launches.

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Disclaimers

^! There are no premium allocation and policy administration charges in this product

^` Life cover is the benefit payable on the death of the Life Assured during the policy term

^{^} Past performance is not indicative of future performance

^U Risk factors and warning statements:

i. Linked insurance products are different from the traditional insurance products and are subject to the risk factors.

ii. The premium paid in linked insurance policies are subject to investment risks associated with capital markets and publicly available index. The NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market/publicly available index and the insured is responsible for his/her decisions.

iii. ICICI Prudential Life Insurance is only the name of the Life Insurance Company and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your insurance agent or intermediary or policy document issued by the insurance company.

iv. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Past performance is not indicative of future performance. Regulations may restrict us from investing in all the stocks in line with their weights in the index from time to time. As a result, there could be a possible tracking error.

^* 100% Tax-free Returns, tax-free partial withdrawals and No LTCG (Long Term Capital Gains) under the policy, subject to satisfaction of conditions prescribed u/s Section 11 (read with Schedule II, Sr. No. 2) of the Income Tax Act, 2025. Policies issued on or after February 01, 2021 where aggregate premium (including top-up premiums and rider premiums) payable during the term of the policy/policies in respect of Unit linked life insurance policies more than Rs 2.5 lakh per year per person is not exempt. Tax benefits/returns under the policy are subject to conditions under Section 123 (read with Schedule XV, Sr. No. 1, 2 & 4 ), Section 11 (read with Schedule II, Sr. No. 2), Section 202 and other provisions of the Income Tax Act, 2025. Goods and Services tax is exempt on Individual Life insurance policies issued/premiums due on or after September 22, 2025. Applicable taxes, if any will be charged as per prevailing rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details

¹ Life cover is the benefit payable on death of the life assured during the policy term.

² Switches are only applicable for fixed portfolio strategy and not applicable for other portfolio strategies.

ICICI Pru Smart Insurance Plan Plus (SIP+) UIN:

COMP/DOC/Aug/2025/218/0969

W/II/2221/2025-26