NFO Alert: ICICI Prudential Mutual Fund launches Innovation Fund; all you need to know

ICICI Prudential Mutual Fund announced the launch of the ICICI Prudential Innovation Fund, an open-ended equity scheme following an innovation theme.

The scheme opened for public subscription on April 10, 2023, and will close on April 24, 2023.

Q. What kind of mutual fund scheme is this?

This is an open-ended equity scheme following the innovation theme. This scheme is suitable for investors seeking

- Long-term wealth creation

- Inclined to invest in stocks adopting innovation strategies or themes.

Q. What is the main objective of investing in this fund?

The scheme aims 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.

Q. How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched sectoral or thematic funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in that particular category. However, a fund relying on benefits from innovation strategies and themes is the first of its kind.

Speaking on the launch, Chintan Haria, Head - Investment Strategy, ICICI Prudential AMC said, “As countries look to become increasingly self-sufficient in terms of resources, innovation as a theme is likely to do well going forward globally and domestically. With the deployment of 5G technology, a wide gamut of sectors/industries stand to benefit and India already has a robust ecosystem in place for nurturing innovation.”

Haria adds, “This offering an investor will have access to companies involved in product/service/solution related innovation both in India and overseas. Given that innovation can happen anywhere, our research team will track sector/theme-specific trends.”

Q. How will the scheme benchmark its performance?

The performance of the Scheme shall be benchmarked against Nifty 500 TRI. The NIFTY 500 Index represents the top 500 companies based on full market capitalization and average daily turnover from the eligible universe. The trustees reserve the right to change the benchmark in future if a benchmark better suited to the investment objective of the scheme is available.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” is also “Nil”. However, the exit load charged, if any, shall be credited back to the respective scheme.

Q. Who will manage this scheme?

The investments under the scheme will be managed by Anish Tawakley and Vaibhav Dusad. Overseas investments in the scheme will be managed by Sharmila D’mello.

Q. Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.