 "Mutual funds (MFs) are gearing up with offerings centered on the ‘quality' theme, as this investment approach is expected to rebound following three years of underperformance compared to the ‘value' theme.")
ICICI Prudential Mutual Fund on Friday launched the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme following Rural and allied theme. It opens on 9 January 2025 and closes on 25. January 2025.
The scheme will predominantly invest in sectors contributing to and benefiting from rural India's growth and development. "This scheme aims to generate long-term wealth creation by investing predominantly in equity and equity-related instruments of companies involved in rural and allied sectors," it said in a release.
Benchmark – Nifty Rural Index
The Nifty Rural Index aims to track the performance of stocks from the Nifty 500 Index, which represent the rural theme. The largest 75 stocks from eligible basic industries are selected based on 6 month average free-float market capitalization.
Sankaran Naren and Priyanka Khandelwal will manage the scheme, which will be benchmarked against the Nifty Rural Index TRI.
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Why Rural Theme?
India's growth story is intricately tied to its rural development. As the country aspires to become a global manufacturing hub, rural India plays a pivotal role in this transformation. The government has made significant strides in improving basic necessities and the quality of life in rural areas, paving the way for broader developmental efforts. With rural demand rebounding after a decade of stagnation and undergoing positive structural changes, the rural theme holds promise. Its broad scope spans multiple sectors and market-caps, offering flexibility and growth potential across the economy.
"Rural India is the next theme that can have a transformational impact in the next decade. Driven by structural and cyclical economic factors and also due to many state governments’ increased focus on rural development through various initiatives, it is likely going to be the segment that will contribute to economic growth. Therefore, our new scheme aims to leverage these developments, offering investors a chance to partake in India’s rural growth story," said Sankaran Naren,ED and CIO of ICICI Prudential AMC.
Highlights:
- The scheme is an open-ended equity scheme focusing on the rural and allied theme
- With a significant portion of India's GDP coming from rural areas and the government and focus on improving rural infrastructure and economy, this theme has the potential to provide
growth opportunities
- Diversified across large, mid and small caps, providing the benefits of different market caps
- Has the flexibility to change allocation to sectors within the rural theme based on the market
conditions to capitalize on market opportunities
Plans Available:
Direct Plan
Regular Plan
Options:
Growth Option
Income Distribution cum Capital Withdrawal (IDCW)
Investment Details:
Minimum Application Amount: ₹5,000 (plus in multiples of ₹1)
Minimum Additional Application Amount: ₹1,000 (plus in multiples of ₹1)
Minimum Redemption Amount: Any amount
Fees:
Entry Load: Not applicable
Exit Load:
Less than 12 months: 1% of applicable NAV
More than 12 months: Nil
Benchmark Index:
Nifty Rural Total Return Index (TRI)
Investment Facilities:
SIP (Systematic Investment Plan)
SWP (Systematic Withdrawal Plan)
STP (Systematic Transfer Plan)
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 "Mutual funds (MFs) managed a record Rs 66.2 trillion in assets during the July-September quarter, marking a 12.3 per cent increase over the previous three-month period — the highest quarterly jump in MF assets in at least five years.")
