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ICICI Prudential Business Cycle Fund NFO

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Gaurav Seth
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ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Business Cycle Fund. The scheme would be investing in equity and equity-related instruments with a focus on the business cycles of companies & sectors and thereby allocating its assets in different stages of the business cycle.

The New Fund Offer (NFO) starts from 29th December 2020 and will end on 12th January 2021.

Scheme reopens for continuous sale and repurchase within 5 business days from the date of allotment.

Investment Objective 

The investment objective of the scheme is to provide long-term capital appreciation from a portfolio that is invested in equity and equity-related securities based on different stages of the business cycle as it is the investing theme of the fund.

Features

  • The Fund will be investing 80-100%  of its assets in equity and equity-related securities of the companies selected on the basis of different stages of the business cycle.
  • The Fund has the flexibility to invest in derivatives instruments, securitized debt to some extent of the net assets,
  • The Fund aims to reflect the most attractive investment ideas by building a portfolio of strong growth companies which are in the different stages of their business cycle.
  • There is no cap on maximum allocations to particular sectors, themes, or market capitalization. The fund has the flexibility to invest in opportunities arising out of the changes in business cycle stages.

Why invest in ICICI Prudential Business Cycle Fund?

Reasons to Invest in ICICI Prudential Business Cycle Fund:

  • The volatility is expected to be higher going forward. Therefore, the fund aims to build  a portfolio by investing in opportunities across different sectors, themes & market capitalizations based on the business cycle.
  • The Fund will follow the top-down approach which will be based on macroeconomic indicators like inflation, growth, deficit & many more.
  • After identifying the attractive sectors based on the business cycles, the fund will choose the portfolio companies based on various financial parameters.
  • There will be monthly evaluations of the investment strategy and macroeconomic environment.

Suitability

This scheme is suitable for investors who are -

  • Interested in Long term wealth creation.
  • Interested in investing in an equity scheme which invests in stocks across companies & sectors based on different stages of the business cycle.
  • Recommend for investing with a time horizon of 5+ years.

Assets Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity & Equity related securities of companies based on different stages of the business cycle80100High
Other Equity and Equity related securities020Moderate to High
Debt and Money market instruments including debt oriented schemes 020Low to Moderate
Preference shares or any other instruments allowed by SEBI020Moderate to High
Units that are issued by REITs and INVITs010Moderate to High

About the scheme

Name of the fundICICI Prudential Business Cycle Fund 
Fund launched byICICI Prudential Mutual Fund 
Asset Management CompanyICICI Prudential Asset Management Company Limited 
Type of schemeAn open-ended equity scheme investing in equity and equity-related securities based on a business cycle based investing theme.
Investment ObjectiveThe investment objective of the scheme is to generate capital appreciation over the long term through investments in equity and equity-related securities of companies & across sectors at different stages of business cycles.
BenchmarkNIFTY 500 TRI
Entry LoadNot Applicable
Exit Load

1% of applicable NAV - If units are redeemed or switched out within 12 months.

Nil - If units are redeemed or switched out after 12 months.

Minimum Application Amount ₹5,000 & in multiples of ₹1 thereafter
Minimum Additional Amount₹1,000 & in multiples of ₹1 thereafter
Allotment DateWithin 5 business days from closure of NFO
STP & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund Managers

Mr. Anish Tawakley and Mr. Ihab Dalwani,

Mr. Manish Banthia (will be involved in identifying business cycles) & Ms. Priyanka Khandelwal(for overseas).

SIP Details

Type Minimum InstallmentsMinimum Amount
Daily/ Weekly/ Fortnightly and Monthly SIP6₹100 & in multiples of ₹1 thereafter
Quarterly SIP4₹5,000 & in multiples of ₹1 thereafter

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