ICICI Prudential Rural Opportunities Fund
The ICICI Prudential Rural Opportunities Fund is a thematic equity mutual fund focusing on the Indian rural economy. The goal is to capture growth opportunities arising from the increasing demand, infrastructure development, and economic activities in rural and semi-urban areas.
Fund Launch and NFO Details:
- Launch Date: January 9, 2025.
- NFO Closure Date: January 23, 2025.
- Unit Price During NFO: ₹10 per unit.
- Allotment Date: Units will be allotted within 5 working days after the NFO closes.
Investment Objective
Minimum Investment Requirements:
- Lump Sum: ₹5,000.
- SIP: ₹100 per installment.
Exit Load:
- 1% if redeemed within 12 months of investment.
Taxation:
- Short-term Capital Gains (STCG): 15% if units are redeemed within 12 months.
- Long-term Capital Gains (LTCG): 10% on gains exceeding ₹1 lakh in a financial year, after 12 months.
NAV and Fund Structure:
- NAV (Net Asset Value): Starts at ₹10 during the NFO. Post-NFO, it fluctuates based on the performance of underlying investments.
- Fund Category: Equity Thematic Fund.
- Benchmark: S&P BSE 500 TRI or an equivalent benchmark tracking rural sectors.
ICICI Prudential Rural Opportunities Fund
Sectors Targeted:
The fund aims to capitalize on rural-focused industries. Key sectors include:
- Agriculture: Fertilizers, seeds, crop protection, farm equipment.
- Infrastructure: Rural roads, irrigation, and renewable energy projects.
- FMCG and Consumer Goods: Companies providing essential and lifestyle products to rural consumers.
- Banking and Financial Services: Microfinance institutions, small finance banks, and insurers focusing on rural India.
- Healthcare: Companies catering to medical needs in semi-urban and rural areas.
- Technology and E-commerce: Platforms connecting rural markets with urban centers.
Pros of the Fund:
- Exposure to Rural Growth: Leverages the untapped potential of rural India’s economic boom.
- Thematic Diversification: Focused investment in rural-centric industries across various sectors.
- Government Support: Policies like rural electrification, housing schemes, and subsidies provide tailwinds for rural-focused businesses.
- Professional Management: Managed by experts with experience in thematic and equity funds.
Cons of the Fund:
- High Sector Risk: Concentration in rural-related industries may lead to volatility during downturns.
- Dependence on Monsoons: Rural income is sensitive to agricultural performance, which depends on monsoon quality.
- Economic Sensitivity: Global or domestic economic slowdowns may impact rural demand.
Investors can participate via:
- Online Platforms: Mutual fund apps or websites like Groww, Zerodha Coin, or Bajaj Finserv.
- Directly Through AMC: Visit the ICICI Prudential Mutual Fund website or branch.
- Through Distributors: Authorized mutual fund distributors or financial advisors.
How to Invest:
Who Can Invest:
This fund is suitable for:
- Investors with a long-term horizon (5+ years).
- Those willing to take higher risks for potential higher returns.
- Investors seeking exposure to rural-focused sectors with a belief in India’s rural growth story.
Future Outlook:
- India’s rural sector is expected to grow significantly due to infrastructure development, government policies, and rising disposable income in rural areas.
- The fund offers a chance to participate in this long-term structural growth theme.
Key Considerations Before Investing:
- Analyze your risk tolerance and financial goals.
- Diversify your portfolio to manage risk effectively.
- Consult with a financial advisor to determine suitability.
To read more detailed information about this NFO click here.
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