Description

ICICI Prudential Mutual Fund announces changes in scheme attributes for ICICI Prudential Silver ETF Fund of Fund, ICICI Prudential Gold ETF, and ICICI Prudential Regular Gold Savings Fund (FOF) effective January 30, 2026.

Summary

ICICI Prudential Asset Management Company Limited has issued a Notice-cum-Addendum regarding changes in three mutual fund schemes effective from closure of business hours on January 30, 2026. The affected schemes are ICICI Prudential Silver ETF Fund of Fund, ICICI Prudential Gold ETF, and ICICI Prudential Regular Gold Savings Fund (FOF). SEBI has granted no-objection for these changes via communication dated December 22, 2025.

Key Points

  • Three ICICI Prudential mutual fund schemes undergoing attribute changes
  • ICICI Prudential Gold ETF (Scheme Code: ICIC/O/O/GET/10/04/0038) investment objective modified
  • Benchmark changed from “LBMA AM Fixing Prices (Domestic Prices of Gold)” to “Domestic Prices of Gold”
  • Investment allocation remains unchanged: 95-100% in gold bullion and instruments, 0-5% in debt & money market instruments
  • ETCD participation limit remains at 50% of net asset value
  • Product labeling details provided for gold and debt instruments
  • SEBI approval received December 22, 2025

Regulatory Changes

SEBI has communicated its no-objection for the change in attributes of the schemes via communication dated December 22, 2025. The primary regulatory change involves:

  • Modification of investment objective for ICICI Prudential Gold ETF to remove specific reference to “LBMA AM fixing prices” while retaining focus on tracking domestic prices of gold
  • Benchmark simplification from “LBMA AM Fixing Prices (Domestic Prices of Gold)” to “Domestic Prices of Gold”
  • Investment strategy and asset allocation percentages remain compliant with existing SEBI regulations
  • ETCD participation continues to be limited to 50% of net asset value as per SEBI regulations

Compliance Requirements

Unitholders of the affected schemes should:

  • Take note of the proposed changes in scheme attributes
  • Review the updated investment objectives and benchmark changes
  • Understand that the scheme continues to be passively managed and not actively managed
  • Be aware that scheme performance may differ from underlying gold due to tracking error
  • Note that investments in securitized debt remain limited to maximum exposure allowed for debt instruments per asset allocation

Important Dates

  • SEBI No-Objection Date: December 22, 2025
  • Effective Date: Closure of business hours on January 30, 2026
  • Circular Issue Date: January 29, 2026

Impact Assessment

Market Impact: Limited to unitholders of the three specific ICICI Prudential schemes. The changes are primarily technical in nature, refining the investment objective and benchmark description without materially altering the investment strategy or asset allocation.

Operational Impact: Minimal operational disruption expected as the core investment strategy (95-100% in gold-related instruments) remains unchanged. The benchmark simplification may improve clarity for investors while maintaining the same underlying investment approach.

Investor Impact: Unitholders should review the updated scheme documents. The changes do not require investor action but provide transparency on how the schemes track domestic gold prices. Performance tracking methodology remains substantially similar with refined benchmark description.

Impact Justification

Affects specific mutual fund schemes with changes to investment objectives and benchmarks. SEBI approved changes. Impact limited to unitholders of these specific ICICI Prudential schemes.