ICICI Prudential Reopens Smallcap Fund: Is This the End of the Downturn?

• ICICI Prudential Mutual Fund has reopened new investments in its smallcap fund from January 23, 2026, after a nearly two-year halt.
• The fund had previously stopped lump-sum investments and switches in March 2024 due to excessive valuations and inflows into smallcap stocks.
• SEBI had advised fund houses to control inflows into smallcap and midcap funds in March 2024, leading to similar actions by SBI and Kotak.
• A significant market correction in 2025, driven by global uncertainties and profit-booking, normalized smallcap valuations.
• While the reopening signals market stability, experts advise caution, emphasizing strong fundamentals, proper asset allocation, and patience for long-term opportunities.

Why It Matters: ICICI Prudential's reopening of its smallcap fund suggests market stability, but investors should remain cautious.