Equity Markets are up and investors want some new ideas and opportunities to invest. One such opportunity is offered by ICICI Prudential Mutual Fund through its New Funds Offer (NFO) called as "ICICI Prudential Business Cycle Fund".
The fund aims to generate wealth by investing across sectors which are at cusp of growth and at the same time move out of those sectors / themes which already have seen growth and likely either top out in the future. Few important details about the scheme is as follows:
ICICI Prudential Business Cycle Fund
Scheme Objective
The scheme aims to invest in sectors / themes which is at cusp of growth and hence generate capital appreciation.
Investment Scope
The scheme aims to invest in equity and across all kinds of stocks from large cap, mid cap and small cap. (Multi cap theme). The stock has to be in Nifty 500 index.
Benchmark Index
Nifty 500 Tri (Total Returns Index). The benchmark returns are as follows:
- 1 Year - 23.06%
- 3 Year - 8.62%
- 5 Year - 14.31%
NFO Period
December 29,2020 - January 12,2021
Lock-in Period
It is an open ended scheme with no lock-in period.
Mode of Investments Available
- Lumpsum - 5000 Rs
- SIP / SWP / STP - Available
- Top Up Available - Yes. Minimum - 1000 Rs
Suitable For:
- Suitable for those investors who are willing to take risk by investing in turnaround themes.
- The scheme objective enables investing across all sizes and sectors and hence brings maximum flexibility but discretion to the fund manager(s). So, the scheme can turn out to be either "a blockbuster" or "a buster" for investors.
Not Suitable For:
- Not for that class of investors who have already invested heavily in equities since most of stocks where this scheme will invest be already covered in other schemes.
- Since turnaround stories don't turn fruitful always, it can lead to some investments which will turn bad and hence investors must be aware that this scheme brings high risk and high reward.
Scheme Details
Presentation
https://www.icicipruamc.com/docs/default-source/default-document-library/ipru-business-cycle-fund---investor-ppt.pdf
One Pager
https://www.icicipruamc.com/docs/default-source/default-document-library/ipru-business-cycle-fund-onepager-investor-(1).pdf
Wishing you a profitable investing!
