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
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity & Equity related securities of companies based on different stages of the business cycle | 80 | 100 | High |
| Other Equity and Equity related securities | 0 | 20 | Moderate to High |
| Debt and Money market instruments including debt oriented schemes | 0 | 20 | Low to Moderate |
| Preference shares or any other instruments allowed by SEBI | 0 | 20 | Moderate to High |
| Units that are issued by REITs and INVITs | 0 | 10 | Moderate to High |
About the scheme
| Name of the fund | ICICI Prudential Business Cycle Fund |
| Fund launched by | ICICI Prudential Mutual Fund |
| Asset Management Company | ICICI Prudential Asset Management Company Limited |
| Type of scheme | An open-ended equity scheme investing in equity and equity-related securities based on a business cycle based investing theme. |
| Investment Objective | The 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. |
| Benchmark | NIFTY 500 TRI |
| Entry Load | Not 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 Date | Within 5 business days from closure of NFO |
| STP & SWP | Available |
| Plans Available |
|
| Options |
|
| 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 Installments | Minimum Amount |
| Daily/ Weekly/ Fortnightly and Monthly SIP | 6 | ₹100 & in multiples of ₹1 thereafter |
| Quarterly SIP | 4 | ₹5,000 & in multiples of ₹1 thereafter |