Description
ICICI Prudential Global Advantage Fund (FOF) to be grandfathered with discontinued subscriptions effective February 5, 2026, and will be merged or wound up within 3 years from January 20, 2026.
Summary
ICICI Prudential Global Advantage Fund (FOF) has been grandfathered effective January 27, 2026, following SEBI’s framework on Fund of Fund schemes. The scheme could not be classified under new regulatory categories and will be merged or wound up within 3 years from January 20, 2026. All existing SIP, STP registrations, and IDCW reinvestment options will be discontinued from February 5, 2026, while redemptions and switch-outs remain available.
Key Points
- Scheme grandfathered effective January 27, 2026 under SEBI framework for FOF schemes
- Mandatory merger or winding up by January 20, 2029 (3 years from SEBI permission date)
- All SIP and STP-IN registrations discontinued from February 5, 2026
- IDCW reinvestment option changed to IDCW Payout from February 5, 2026
- Fresh subscriptions (lump sum, switch-in, new SIP/STP) already discontinued since August 13, 2024
- Redemptions, switch-outs, existing STP-Out and SWP continue without changes
- Scheme to continue adhering to existing SID and KIM provisions
Regulatory Changes
SEBI issued a framework on February 6, 2025 regarding Fund of Fund schemes with multiple underlying funds, requiring classification under specific categories. The ICICI Prudential Global Advantage Fund (FOF) could not fit into any specified category under this framework. SEBI granted grandfathering permission on January 20, 2026, allowing the scheme to continue temporarily with existing asset allocation and investment objectives, subject to mandatory closure within 3 years.
Compliance Requirements
For Investors:
- Review existing SIP/STP investments before February 5, 2026 discontinuation
- Update investment strategy as no new investments permitted
- Plan exit strategy considering 3-year mandatory closure timeline
- Verify IDCW payment mode change from reinvestment to payout
- Periodically review and update KYC details, mobile numbers, and email IDs
For Fund Manager:
- Discontinue all SIP/STP-IN facilities by February 5, 2026
- Convert IDCW reinvestment to payout mode
- Continue adhering to regulatory guidelines and SID/KIM provisions
- Complete scheme merger or wind-up by January 20, 2029
Important Dates
- August 13, 2024: Fresh subscriptions (lump sum, switch-in, SIP/STP) discontinued
- January 20, 2026: SEBI grandfathering permission granted
- January 22, 2026: Notice issued to investors
- January 27, 2026: Grandfathering effective date
- February 5, 2026: Existing SIP/STP and IDCW reinvestment discontinued
- February 6, 2025: SEBI framework on FOF schemes issued
- January 20, 2029: Deadline for scheme merger or wind-up (3 years from permission)
Impact Assessment
Investor Impact (High):
- Existing investors face forced closure of systematic investment plans
- No option to continue accumulating units through SIP/STP
- Loss of rupee cost averaging benefits for ongoing investors
- Need to restructure investment portfolios and find alternative FOF schemes
- IDCW investors must handle cash payouts instead of automatic reinvestment
- Uncertainty regarding merger counterparty or liquidation terms
Market Impact (Medium):
- Sets precedent for other grandfathered FOF schemes under similar regulatory framework
- May trigger industry-wide restructuring of non-compliant FOF schemes
- Potential redemption pressure as investors exit before forced closure
- Affects ICICI Prudential AMC’s FOF product lineup
Operational Impact (Medium):
- Fund house must manage gradual wind-down over 3-year period
- Administrative burden of converting IDCW options and discontinuing facilities
- Need for ongoing investor communication regarding closure timeline
- Portfolio management constrained by grandfathering restrictions
Impact Justification
Significant change affecting existing mutual fund investors with mandatory discontinuation of SIP/STP and eventual scheme closure within 3 years