ICICI Mutual Fund has launched a new sectoral fund in the housing category, ICICI Prudential Housing Opportunities Fund
The New Fund Offer (NFO) period for the ICICI Prudential Housing Opportunities Fund is from March 28th 2022 to April 11th 2022. The scheme re-opens for continuous repurchases and sale after five days from the date of allotment.
The fund’s investment objective is to generate long term capital appreciation by investing in equity and equity related instruments of companies engaged in or expected to benefit from the growth of the housing theme. However, the scheme does not assure or guarantee that the investment objective will be met.
ICICI Prudential Housing Opportunities Fund Details
|Fund Name||ICICI Prudential Housing Opportunities Fund|
|NFO Opening Date||March 28th 2022|
|NFO Closing Date||April 11th 2022|
|Re-open Date||After five days from the date of allotment|
|Type of Fund||Open-ended equity scheme|
|Fund Manager||Equity Portion: Mr Sankaren Naren & Mr Anand SharmaOverseas Investment: Ms Priyanka Kandelwal|
|Minimum Investment Amount||INR 5,000|
|Minimum Additional Purchase Amount||INR 1,000|
|Benchmark||Nifty Housing TRI|
|Plans and Options||Regular Plan & Direct PlanGrowth & IDCW|
- All the investment amounts should be multiple of INR 1/-
- Minimum SIP/SWP/STP for monthly frequency is INR 100/- and quarterly frequency is INR 5,000/-
Who Can Invest?
ICICI Prudential Housing Opportunities Fund best suits investors who aim for long-term wealth appreciation. The fund spreads its assets dynamically across equity and equity-linked securities along with units of REITs and INVTs. The fund can be subject to high volatility due to demand and supply. In other words, at times, this fund can perform very well, but at challenging times, it can be volatile. Therefore, this fund is suitable for investors who don’t need immediate liquidity or do not link this fund to immediate financial goals. Such investors can consider investing some part of their portfolio for diversification. Moreover, investors must consider reviewing their portfolio every 2-3 years.
Explore: Best Infrastructure Funds
- Mr Sankaran Naren:
Mr Sankaran Naren oversees the investment functions across the Mutual Fund and International Advisory Business of ICICI Mutual Fund. He has been instrumental in the overall investment strategy development and execution at the company. He is the leading voice in the Indian capital markets and has numerous awards for his name in fund management. His views on macro and markets are featured prominently across media, both locally and globally. An alumnus of IIT Madras and IIM Kolkata, he has served various roles in the financial services industry and investment management. He has over three decades of work experience. Naren has worked with organisations such as Refco Sify Securities India Pvt Ltd, HDFC Securities Ltd, and Yoha Securities.
- Mr Anand Sharma:
Mr Anand Sharma was recently appointed as a Senior Investment Analyst in MF Equity in ICICI Mutual Fund in November 2021. He has a research experience of 7 years in pharmaceuticals, healthcare, metals, sugar, mining and textile industries. Before joining ICICI mutual fund, he was associated with Oracle Financial Services Software Ltd. He holds a Master’s in Finance and B Tech Eng in computers.
- Ms Priyanka Khandelwal:
Ms Priyanka Khandelwal is Chartered Accountant and Company Secretary. She has been working with ICICI Prudential Mutual Fund since October 2014.
ICICI Prudential Housing Opportunities Fund aims for long term capital appreciation for investors by following the Nifty Housing TRI. The following is the indicative asset allocation of the fund under normal circumstances.
|Types of Instruments||Indicative Allocation Maximum||Indicative Allocation Minimum||Risk Profile|
|Equity and Equity Related Instruments of companies involved in housing theme||100%||80%||Very High|
|Other Equity and Equity related instruments||20%||0||Very High|
|Debt instruments, Units of Debt Mutual Fund Schemes, Money Market Instruments and Preference Shares||20%||0||Low to Medium|
|Units issued by REITs and INVTs||10%||0||Very High|
The scheme may also take exposure to –
- Derivative positions for other than hedging purposes shall not exceed 50% of the total assets.
- The scheme may also invest 20% of its net assets in ADRs, GDRs or foreign equity securities.
- Securitised debt up to 50% of the debt portfolio of the scheme.
- Stock lending up to 20% of its net assets and a single intermediary limit will be up to 5% of the net assets.
- Investment in structured obligations shall not exceed 10% of the debt portfolio of the scheme.
ICICI Pru Housing Opportunities Fund NFO Review
ICICI Prudential mutual fund is the second fund house to roll out the Housing Opportunities Fund. The ICICI Prudential Housing Opportunities Fund is an open-ended equity scheme that will invest in basic eligible themes that are a part of the Nifty Housing Index. The fund aims to provide long term appreciation to its investors by investing in equity and equity-related instruments.
This fund follows a theme of the housing sector and requires investors to have a high understanding of risk. Therefore, investors can consider investing some part of their portfolio for diversification, especially if they want to invest beyond regular actively and passively managed funds. Since the fund doesn’t guarantee returns and is exposed to the high risk of the equity markets, it is recommended to regularly monitor the investment in this fund.
Discover More Thematic Funds by ICICI