ICICI Prudential Mutual Fund has launched a 3-year close-ended equity scheme, ICICI Prudential Fusion Fund Series - III.
Investment Objective
The investment objective is to seek long term capital appreciation by investing predominantly in equity & equity related securities of companies across large, mid and small market capitalization.
Investment Strategy
- Will seek to invest in companies / sectors that will potentially offer long-term growth prospects e.g. Infrastructure, Consumption and Outsourcing companies / sectors.
- Will invest in the companies that have huge and sustainable demand potential.
- Will invest in companies that are set for transition - The present trend of economic expansion and globalization that India is undergoing presents tremendous opportunities for several sunrise industries with the potential to grow into large and fast growing industries. The fund will focus on early identification of such companies and benefit from investing in such companies.
- Will identify the companies that have the potential to grow from mid-cap to large-cap - India’s macroeconomic and corporate fundamentals are currently very strong. With a better than expected performance of the corporate sectors in the recent years the Indian economy seems to be on a high growth trajectory. Such environment in conducive for the overall growth in corporate earnings. Companies that have the potential to take advantage of such growth opportunities will be the one’s that will transform from mid-cap to large-cap.
- Will Invest in companies having special situations advantage - The growing and vibrant economy provides immense opportunities from time to time which are termed as special situations, e.g. bustling news of mergers, acquisitions, takeovers, strategic tie-ups etc.
- Will invest at the pre IPO stage - Investing in growth oriented companies at the pre-IPO stage and reaping the benefits of capital appreciation when the companies go public.
- Will Invest in smaller companies and facilitate their market communication - Take meaningful investments in attractive small cap companies that have the potential to become large caps over the tenure of the scheme.
Key Advantages
- Concentrated Portfolio – The fund seeks to gradually build a core and concentrated portfolio of selected stocks that provide promising investment opportunities, so that they can be tracked more closely.
- Bottom up Stock Picking – Will help the fund to benefit for any investment opportunities available in companies across market caps.
- Close-ended Advantage – A close-ended fund allows fund manager to focus on investments rather than handling liquidity due to redemption pressures. This enhances the fund manager’s capabilities to hold on to select investments in the face of adverse market circumstances.
Scheme Features
- Asset Allocation:
- Equity & Equity related Securities: 70 – 100%
- Debt & Money Market Instruments: 0 – 30%
- Investment Options: Growth & Dividend Payout.
- Benchmark Index: S&P CNX Nifty.
- Minimum Investment amount: Rs 5000/- and Rs. 1/- thereafter.
- Liquidity: Quarterly – Every 15th Day from the end of each calendar quarter.
- Load Structure:
- Entry Load: Nil.
- Exit Load: Nil – (Unamortized new fund offer expenses if redeemed before maturity).
NFO opens on January 8th 2008
NFO Closes on February 20th 2008
Investment Rationale
- The fund aims to benefit from the corporate growth. For which it will focus more on small & mid cap segment.
- It will invest across the stock universe to participate in the earning’s growth of all the segments in the economy.
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