ICICI Prudential Asset Management Company Ltd. is a prominent AMC in India. The AMC is a joint venture between ICICI Bank, a trusted name in financial services in India, and Prudential PIc, one of the largest players in the UK’s financial services sectors. Over the years, the AMC has become a leading player in the Indian Mutual Fund industry and manages significant AUM in the mutual fund segment. It also offers Portfolio Management Services for investors and International Advisory Mandates for clients across international markets. The AMC has witnessed substantial growth in scale, from 2 locations and 6 employees at the inception of the joint venture in 1998 to a current strength of 2431 employees with a reach across over 350 locations, serving an investor base of 7.5 million investors (as on March 31, 2022). The organization is driven by an investor-centric approach, investment expertise, resource bandwidth, and process orientation.
ICICI Prudential Asset Management Company Ltd. is coming up with ICICI Prudential Innovation Fund, an NFO scheme with an investment objective to generate long-term capital appreciation by predominantly investing in equity & equity related securities of companies and units of global mutual funds/ETFs that can benefit from innovation strategies and themes. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme opens on the 10th of April, 2023, and closes on the 24th of April, 2023.
ICICI Prudential Innovation Fund NFO Details:
| Mutual Fund: | ICICI Prudential Mutual Fund |
| Scheme Name: | ICICI Prudential Innovation Fund |
| Scheme Code: | ICIC/O/E/THE/23/02/0171 |
| Objective of Scheme: | The Scheme is an open ended thematic fund. The objective of the Scheme is to generate long term capital appreciation by predominantly investing in equity & equity related securities of companies and units of global mutual funds/ETFs that can benefit from innovation strategies and themes. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved. |
| Benchmark: | Nifty 500 TRI |
| Scheme Type: | Open Ended |
| Scheme Category: | Equity Scheme – Sectoral/Thematic |
| New Fund Launch Date: | 10th April 2023 |
| New Fund Offer Closure Date: | 24th April 2023 |
| Fund Managers: | Mr. Anish Tawakley and Mr. Vaibhav Dusad.
For overseas investment – Ms. Sharmila D’mello |
| Plans: | · ICICI Prudential Innovation Fund – Regular Plan
· ICICI Prudential Innovation Fund – Direct Plan |
| Options | · Growth & IDCW* |
| Entry Load: | Not Applicable |
| Exit Load: | If redeemed/switched out within 12 months from the date of allotment: 1% of applicable NAV
If redeemed/switched out after 12 months from the date of allotment: Nil |
| Minimum Application Amount: | Rs. 5,000 and in multiples of Re. 1/- thereafter |
| Minimum Additional Purchase Amount | Rs. 1000 and in multiples of Re. 1/- thereafter |
*- IDCW – Income Distribution cum Capital Withdrawal Option. Payment of IDCW is subject to availability of distributable surplus and Trustee approval. Pursuant to payment of IDCW, the NAV of the scheme falls to the extent of IDCW payout. When units are sold and sale price (NAV) is higher than face value of the unit, a portion of sale price that represents realized gains is credited to an Equalization Reserve Account and which can be used to pay IDCW. IDCW can be distributed out of investors capital (Equalization Reserve), which is part of sale price that represents realized gains. In case the unit holder has opted for IDCW payout option, the minimum amount for IDCW payout shall be 100 (net of dividend distribution tax and other statutory levy, if any), else the IDCW would be mandatorily reinvested.
ICICI Prudential Innovation Fund NFO
Application Form
ICICI Prudential Innovation Fund NFO Asset Allocation:
| Instrument | Indicative Allocation ( % of assets) | Risk Profile | |
| Maximum | Minimum | High/Moderate/Low | |
| Equity & Equity related securities of companies adopting innovation strategies and themes & Overseas Securities adopting innovation strategies and themes | 100% | 80% | Very High |
| Other Equity & Equity Related Instruments | 20% | 20% | Very High |
| Debt and Money Market Instruments | 20% | 0% | Low to Medium |
| Units issued by REITs & InvITs | 10% | 0% | Very High |
ICICI Prudential Innovation Fund NFO Conclusion:
India has a robust ecosystem that’s highly conducive to nurturing innovation, and in the last decade, the pace of innovation has picked up significantly compared to previous decades. The innovation theme is highly versatile and can occur across different sectors, themes, and companies, regardless of market cap. As countries strive to become more self-sufficient in terms of resources, the innovation theme is likely to perform well both globally and domestically. The asset management company is committed to identifying potential trends in various sectors and themes and taking the necessary steps to capitalize on these opportunities.
It’s important to note that investing in mutual fund units involves investment risks such as trading volumes, settlement risks, liquidity risks, and default risks, including the possible loss of principal. However, this product is ideal for investors seeking long-term wealth creation and an equity scheme that invests in stocks adopting innovative strategies or themes. Therefore, investors can reap the rewards of investing in this innovative scheme while mitigating risks by seeking advice from financial advisers at Elite Wealth.
| This product is suitable for investors who are seeking*: | ICICI Prudential Innovation Fund
Investors understand that their principal will be at Very High Risk |
| · Long term wealth creation
· An equity scheme that invests in stocks adopting innovation strategies or themes. |
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.