ICICI Prudential AMC launches banking and financial sector fund
ICICI Prudential asset management company today has launched ICICI Prudential Banking and Financial Services Fund, which seeks to capture the best opportunities presented by the banking and financial services sector.
By ET Online |
MUMBAI: ICICI Prudential asset management company today has launched ICICI Prudential Banking and Financial Services Fund, which seeks to capture the best opportunities presented by the banking and financial services sector.
The new fund offering opens for subscription on July 9 and will close on August 7. The units of the scheme can be subscribed during the NFO at Rs.10 per unit plus applicable loads.
Both retail and institutional options are available for investments. In retail option, the scheme carries an entry load of 2.25 per cent of the applicable net asset value for investment of less than Rs. 5 crore. For investment of Rs. 5crore sand above, there is no entry load.
Institutional option does not bear any entry load.
An exit load of 1 per cent of the applicable net asset value will be charged for retail investment of Rs. 5 crore and above, if redeemed before 6 months from the date of allotment. There will be no exit load on institutional plan.
The open ended equity scheme aims to maximize long-term capital appreciation by investing 70 per cent to 100 per cent in equity and equity related securities of companies engaged in banking and financial services and 0 per cent to 30 per cent in debt instruments.
"The fund is introduced to provide investors an opportunity to participate in a sector that has been in existence for over 100 years and plays the defining role as the backbone of the Indian economy," said Nimesh Shah, managing director, ICICI Prudential AMC.
He further added, "as the banking and financial services sector is currently witnessing re-rating in valuations, it is the most opportune time to participate in this sector. It is expected to do well.���
The investment strategy of the fund is bottom-up stock picking whereby intrinsic value of stock is derived after internal research, analysis of company���s strengths, business model, sustainable competitive advantages and ability to grow.
The fund would look at stocks across the universe of banking and financial services companies without any capitalisation bias.
���Focus will be on companies gaining market share in businesses through excellent customer service, product innovation and operating efficiency,��� mentioned Shah.
The new fund offering opens for subscription on July 9 and will close on August 7. The units of the scheme can be subscribed during the NFO at Rs.10 per unit plus applicable loads.
Both retail and institutional options are available for investments. In retail option, the scheme carries an entry load of 2.25 per cent of the applicable net asset value for investment of less than Rs. 5 crore. For investment of Rs. 5crore sand above, there is no entry load.
Institutional option does not bear any entry load.
An exit load of 1 per cent of the applicable net asset value will be charged for retail investment of Rs. 5 crore and above, if redeemed before 6 months from the date of allotment. There will be no exit load on institutional plan.
The open ended equity scheme aims to maximize long-term capital appreciation by investing 70 per cent to 100 per cent in equity and equity related securities of companies engaged in banking and financial services and 0 per cent to 30 per cent in debt instruments.
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"The fund is introduced to provide investors an opportunity to participate in a sector that has been in existence for over 100 years and plays the defining role as the backbone of the Indian economy," said Nimesh Shah, managing director, ICICI Prudential AMC.
He further added, "as the banking and financial services sector is currently witnessing re-rating in valuations, it is the most opportune time to participate in this sector. It is expected to do well.���
The investment strategy of the fund is bottom-up stock picking whereby intrinsic value of stock is derived after internal research, analysis of company���s strengths, business model, sustainable competitive advantages and ability to grow.
The fund would look at stocks across the universe of banking and financial services companies without any capitalisation bias.
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���Focus will be on companies gaining market share in businesses through excellent customer service, product innovation and operating efficiency,��� mentioned Shah.
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