ICICI Prudential Mutual Fund launches energy opportunities fund

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Energy Opportunities Fund, an open-ended equity scheme that will predominantly invest in the energy theme.

The new fund offer or NFO of the scheme will open for subscription on July 2 and close on July 16.

This scheme aims to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies engaged in or benefiting from the growth in traditional and new energy industries/sectors, as well as allied businesses.


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The scheme will be managed by Sankaran Naren and Nitya Mishra, and the benchmark for the scheme will be Nifty Energy TRI. The minimum application amount is Rs 5,000 (plus in multiples of Re 1). The exit load of 1% of applicable NAV will be available if redeemed in less than three months. The exit load will be nil if redeemed in more than three months.

The scheme will allocate 80-100% in equity and equity-related instruments of companies engaged in Energy (traditional / new) and allied sectors, 0-20% in other equity and equity -related securities, 0-20% in debt, units of mutual fund schemes and money market instruments, and 0-10% in units issued by REITs/ InvITs.

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“Energy is the cornerstone of industrial growth and economic development. With the ongoing transition towards renewable energy and the government's focus on achieving net-zero emissions, the energy theme offers significant growth potential. Through this scheme, investors can gain access to a diversified portfolio of companies across the energy value chain,” said Sankaran Naren, ED and CIO, of ICICI Prudential Mutual Fund.

“Although Nifty Energy Index has outperformed the broader market recently, the valuations remain reasonable, and investors may consider this scheme from a long-term perspective,” he added.

At present, there is only one fund SBI Energy Opportunities Fund- based on the same theme and is benchmarked against Nifty Energy - TRI. SBI Energy Opportunities Fund was launched in February 2024.