ICICI Prudential Mutual Fund NFO: ICICI Prudential Mutual Fund has launched a new fund offer (NFO), subscription of which is open till January 23, 2025. The name of this new fund is ICICI Prudential Rural Opportunities Fund, which is an open-ended equity scheme. The objective of this new fund is to invest in stocks of companies related to the development potential of rural India, so as to achieve long term capital growth for its investors. Before deciding whether you should invest in this scheme or not, it is important to get information about important things related to the scheme.
NFOpurpose of
The main objective of ICICI Prudential Rural Opportunities Fund is to achieve long-term capital growth by investing in equity and equity related instruments. This scheme will invest in companies whose business activities are in rural areas, such as supply chain, raw material sourcing, factories, distribution channels, etc. This strategy will help in taking full advantage of the growing potential of rural India.
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In which sectors will this scheme invest?
The investment horizon of ICICI Prudential Rural Opportunities Fund is spread across 12 sectors, which include Automobile and Auto Components, Capital Goods, Consumer Durables, FMCG, Financial Services, Power, Construction Materials and Telecommunication. The fund is likely to get strengthened due to this diversified investment.
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investment strategy
The corpus of the fund will include stocks of large cap, mid cap and small-cap companies, thereby creating a diversified portfolio. There will be flexibility in sector allocation as per the market conditions, so that the impact of market fluctuations can be reduced. The fund manager will try to earn high returns by investing the funds of the scheme in companies related to the rural economy.
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Minimum investment and exit load in NFO
Subscription in this NFO is open on 9 January 2025 and will remain open till 23 January 2025. This scheme will follow Nifty Rural Index TRI as the benchmark. The minimum investment amount in the scheme is Rs 5,000 and thereafter additional investment can be made in multiples of Re 1. SIP can be started with Rs 100, in which at least 6 installments are required to be paid. If investors redeem the units of this scheme within 12 months of allotment, then an exit load of 1% will be imposed. There will be no charge for redemption after 12 months.
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What is special in this NFO?
Rural India is going to become an important center of economic development in the coming decade. Due to various schemes of state governments and structural economic changes, the rural economy is witnessing a boom. The objective of this fund is to take advantage of these opportunities and give investors an opportunity to participate in the story of rural development. This gives investors an opportunity to be a part of India’s economic progress. Besides, there is also a possibility of getting the benefit of diversification through investment in different sectors. But at the same time this scheme is very high risk. Therefore, those who intend to invest for a long time and are willing to tolerate high risk for the possibility of higher returns can consider investing money in it.
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Should you invest?
Investors who are interested in the growth potential of the rural economy and are planning to invest for the long term can consider investing in this NFO. But before taking any decision, it is important to keep in mind the ‘Very High Risk’ level of the scheme. Consider investing in this scheme only when you can tolerate high risk.
Big things about NFO
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NFO Open Date: 9 January 2025
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NFO Close Date: 23 January 2025
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Benchmark: Nifty Rural Index TRI
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Fund Managers: Sankaran Naren, Priyanka Khandelwal
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Risk Level: Very High
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Minimum investment: Rs 5,000
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Exit Load: 1% within 12 months
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment. Take any investment decision only after taking the advice of your investment advisor.)
