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{"id":2697,"date":"2021-01-06T04:29:56","date_gmt":"2021-01-06T04:29:56","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=2697"},"modified":"2021-01-06T04:42:10","modified_gmt":"2021-01-06T04:42:10","slug":"icici-pru-business-cycle-fund-looking-to-ride-business-cycle-shifts","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2021\/01\/06\/icici-pru-business-cycle-fund-looking-to-ride-business-cycle-shifts\/","title":{"rendered":"ICICI Pru Business Cycle Fund: Looking to Ride Business Cycle Shifts"},"content":{"rendered":"\n

Amidst the economic slump during the COVID-19 crisis, the equity market witnessed several sectors such as Pharma and IT outperforming in a short span of time. Now with the domestic economy showing signs of revival and expectation of further growth, depressed sectors could make a comeback and the market could soon witness new sectoral leaders.<\/p>\n\n\n\n

Such shift in business cycles can provide room to identify investment opportunities across sectors\/themes\/market caps.<\/p>\n\n\n\n

ICICI Prudential Business Cycle Fund<\/strong>, the latest offering from ICICI Prudential AMC<\/a> will aim to identify wealth creation opportunities from such business cycle shifts.<\/p>\n\n\n\n

Mr S Naren, ED and CIO of ICICI Pru AMC is of the view that for the next 10 years central banks and macro trends will drive the market, which makes business-cycle oriented investing the way forward.<\/p>\n\n\n\n

As a thematic fund, ICICI Pru Business Cycle Fund has a mandate to invest minimum 80% of its assets in equity & equity related instruments following business cycles based investing theme. The performance benchmark index of the fund is Nifty 500Total Returns Index.<\/p>\n\n\n\n

ICICI Pru Business Cycle Fund is an open-ended equity scheme that will seek to generate long-term wealth creation by investing Indian markets with the focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.<\/p>\n\n\n\n

Table 1: Details of ICICI Pru Business Cycle Fund<\/em><\/strong><\/p>\n\n\n\n

\n
\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
Type<\/strong><\/td>\n\t\t\tAn Open ended Equity Scheme following business cycles based investing theme<\/td>\n\t\t\tCategory<\/strong><\/td>\n\t\t\tThematic Fund<\/td>\n\t\t<\/tr>\n\t\t
Investment Objective<\/strong><\/td>\n\t\t\tTo generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. However, there can be no assurance that the investment objective of the Scheme will be achieved.<\/td>\n\t\t<\/tr>\n\t\t
Min. Investment<\/strong><\/td>\n\t\t\tRs 5,000 and in multiples of Re 1 thereafter<\/td>\n\t\t\tFace Value<\/strong><\/td>\n\t\t\tRs 10\/- per unit<\/td>\n\t\t<\/tr>\n\t\t
Plans<\/strong><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • Direct<\/li>\n\t\t\t\t
  • Regular<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t\t
Options<\/strong><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • Growth<\/li>\n\t\t\t\t
  • Dividend<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t
Entry Load<\/strong><\/td>\n\t\t\tNot Applicable<\/td>\n\t\t\tExit Load<\/strong><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • – An Exit Load of 1% is payable if Units are redeemed \/ switched-out up to one year from the date of allotment;<\/li>\n\t\t\t\t
  • – Nil if Units are redeemed \/ switched-out after one year from the date of allotment<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t
Fund Manager<\/strong><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • – Mr Anish Tawakley<\/li>\n\t\t\t\t
  • – Mr Ihab Dalwai<\/li>\n\t\t\t\t
  • – Mr Manish Banthia<\/li>\n\t\t\t\t
  • – Ms Priyanka Khandelwal<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t\t
Benchmark Index<\/strong><\/td>\n\t\t\tNifty 500 (Total Returns Index)<\/td>\n\t\t<\/tr>\n\t\t
Issue Opens<\/strong><\/td>\n\t\t\tDecember 29, 2020<\/td>\n\t\t\tIssue Closes<\/strong><\/td>\n\t\t\tJanuary 12, 2021<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n<\/center>\n\n\n\n

(Source: Scheme Information Document<\/a>) <\/p>\n\n\n\n

Investment strategy – ICICI Pru Business Cycle Fund<\/strong><\/p>\n\n\n\n

ICICI Pru Business Cycle Fund will invest predominantly in equity and equity related securities with a focus on riding business cycles. It will invest dynamically across various sectors and stocks at different stages of business cycles.<\/p>\n\n\n\n

The scheme will aim to identify economic trends and invest in the sectors and stocks that are likely to outperform at any given stage of business cycle (i.e. the expansion or contraction phase). It will utilise pure top-down approach based on various macro indicators – inflation, growth, deficit, etc.<\/p>\n\n\n\n

The fund manager will consider the following economic parameters to decide on the expansion or contraction phase:<\/p>\n\n\n\n