ICICI Prudential Mutual Fund Launches Rural Opportunities Fund to tap growth in India
ICICI Prudential Mutual Fund has launched the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme, which seeks to tap the growth and development of rural India. The NFO will be open for subscription from January 9, 2025, to January 25, 2025. The scheme is primarily focused on equity investments in companies contributing to or benefiting from the expansion of the rural and allied sectors.
Investment Focus and Benchmark
The scheme is designed to be invested predominantly in sectors driving the progress of rural India. Long-term wealth is expected to be generated through investments in equity and equity-related instruments within these sectors. The fund is benchmarked against the Nifty Rural Index which tracks the performance of 75 stocks from the Nifty 500 Index which are aligned with the theme of rural. Stock selection is on the basis of a six-month average free-float market capitalization.
Rationale Behind the Rural Theme
Rural India forms an important source of growth in the nation’s economy. All the initiatives undertaken by the government in order to strengthen the infrastructure, improve quality of life, and promote economic prospects in rural areas have given rise to transformative growth. In this regard, the recovery in rural demand, following over a decade of stagnation, presents a structural shift, allowing space for sustained growth.
Further emphasis on the importance of rural development is India’s aspiration to become a global manufacturing power. This theme provides ample opportunity for investment in various sectors and market capitalizations that ensure diversification and the ability to adapt to changing market trends.
The ICICI Prudential Rural Opportunities Fund offers large-cap, mid-cap and small-cap stocks diversification in the investment portfolio, making investors take advantage of all market segments. Again, the scheme has provision to adjust sectoral weightage under the rural theme basis the prevailing market situation.
Key Highlights
- Plans Offered: Direct Plan, Regular Plan
- Choices: Growth Choice and Income Distribution cum Capital Withdrawal (IDCW)
- Minimum Amount to be Applied: Rs.5,000 (plus in multiples of Rs.1)
- Minimum Additional Amount to be Applied: Rs.1,000 (plus in multiples of Rs.1)
- Minimum Redemption Amount: Any amount
Charges
- Entry Load: Nil
- Exit Load: Redemption- 1% applicable NAV on redemption within 12 months
Nil on Redemption thereafter
This fund offers investment facilities like SIP (Systematic Investment Plan), SWP (Systematic Withdrawal Plan), and STP (Systematic Transfer Plan), which makes it possible for investors to invest and take part in India’s story about growth in the rural parts of the country.
By focusing on sectors that contribute to the development of rural India, the ICICI Prudential Rural Opportunities Fund offers investors a bet on India’s emerging and evolving rural economy. For long-term wealth creation purposes, this scheme offers enough diversification and flexibility.
