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ICICI Prudential eyeing retail investors in UP

It is diversified equity fund aimed at providing capital appreciation by investing in a portfolio of socks through fundamental analysis

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Virendra Singh Rawat Lucknow
Last Updated : Oct 15 2013 | 6:13 PM IST
ICICI Prudential Asset Management Company is eyeing retail investors in Uttar Pradesh for its new diversified equity scheme.

“Lucknow and Kanpur still account for almost 40% of retail investors in UP. Hence, there is a lot of untapped potential in other major towns of the state,” company’s fund manager Mrinal Singh told Business Standard here.

‘ICICI Prudential Value Fund Series 1’ is a close ended equity fund scheme, which would be available between October 18 and 28, 2013.

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It is a diversified equity fund aimed at providing capital appreciation by investing in a portfolio of socks through fundamental analysis.

“Diversified equities fund is the best bet for retail investors, especially during stock markets fluctuations,” he said.

Theme funds (sector specific funds) are best for “informed” investors with better knowledge about the capital markets, he added.

At the end of September 2013, the total asset under management (AUM) of ICICI Prudential stood at over Rs 84,000 crore, representing over 11% year-on-year growth in the corresponding quarter.

“The mutual fund investors should have 3-5 years investment horizon for better returns,” Singh added.

About 90% of our funds have outperformed industry over 3-5 years horizon, he claimed. “This is the best time for retail investors to enter the market as the stocks are available at fair value, especially infrastructure, textiles and auto ancillary stocks.”

All Indian AMCs have been mandated to spend 0.02% of their corpus towards the investors’ education.

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First Published: Oct 15 2013 | 6:11 PM IST

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