ICICI Prudential Mutual Fund has introduced the ICICI Prudential Energy Opportunities Fund, an open-ended equity scheme centered around the energy theme.
The fund is available for public subscription from July 02, 2024, to July 16, 2024. It will then allow continuous sale and repurchase within five business days after the allotment date.
What type of mutual fund scheme is ICICI Prudential Energy Opportunities Fund ?
This scheme is an open-ended equity fund focusing on the energy theme. It is ideal for investors interested in
Long-term wealth creation
Investing in companies involved in traditional and emerging energy sectors and related businesses.
During the launch event, Sankaran Naren, the ED & CIO of ICICI Prudential AMC and the fund manager, highlighted, “Energy plays a vital role in industrial growth and economic progress. As the world shifts towards renewable energy and the government emphasizes achieving net-zero emissions, the energy theme presents significant growth opportunities. This fund provides investors with a diversified portfolio of companies operating across the energy value chain.”
What is the primary goal of investing in this fund?
The fund's investment objective is to offer investors opportunities for long-term capital growth by investing in equity and equity-related instruments of companies involved in traditional and new energy activities, including but not limited to industries such as oil & gas, utilities, and power, encompassing exploration, production, distribution, transportation, and processing.
Nevertheless, there is no guarantee that the fund's investment objective will be met.
Discussing valuations and recent performance, Naren comments, "Despite the recent outperformance of the Nifty Energy Index compared to the broader market, valuations remain reasonable, and investors may want to consider this fund from a long-term perspective."
What is the process for investing in this scheme?
Investors can participate in the scheme by investing a minimum of ₹5000 per plan/option and in increments of Re 1. There is no maximum limit for investment.
Typically, the asset allocation of the scheme will be as outlined below:
Instruments | Indicative allocations (% of total assets) MIN | Indicative allocations (% of total assets) MAX | Risl Profile |
Equity & equity-related instruments of companies engaged in energy (traditional/new) and allied sectors | 80% | 100% | Very High |
Other equity and equity-related securities | 0% | 20% | Very High |
Debt and Money market instruments | 0% | 20% | Low to Medium |
Units issued by REITs/ InvITs | 0% | 10% | Medium To High |
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