ICICI Prudential Mutual Fund introduced the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme focusing on Rural and allied themes. The fund will be available for investment from January 9, 2025, to January 25, 2025. It aims to primarily invest in sectors that support and thrive on the growth of rural India. The scheme’s objective is to achieve long-term wealth creation by predominantly investing in equity and equity-related instruments of companies operating in rural and allied sectors, as stated in the release.
What is Rural Opportunities Fund?
India’s economic growth is closely linked to the development of its rural areas. As India aims to establish itself as a leading global manufacturing center, the rural regions of the country are essential to this progress. The government has made significant advancements in enhancing essential services and living standards in rural communities, setting the stage for further development initiatives. With rural demand picking up after a period of stagnation and experiencing positive structural changes, the rural sector presents promising opportunities. This sector encompasses a wide range of industries and market sizes, offering versatility and growth potential throughout 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.
Key details of the new fund
This open-ended equity scheme emphasizes the rural and allied theme, taking advantage of the substantial contribution of rural areas to India’s GDP and the government’s efforts to enhance rural infrastructure and economy. This thematic focus presents opportunities for growth.
The scheme is diversified across large, mid, and small caps, offering the benefits of exposure to different market capitalizations.
The flexibility of the scheme allows for adjustments in sector allocation within the rural theme, enabling the capitalization on market opportunities based on prevailing market conditions.
The Nifty Rural Index is designed to mirror the movements of stocks within the Nifty 500 Index that are associated with rural industries. The index selects the top 75 stocks from qualifying basic industries based on their average free-float market capitalization over a 6-month period.
Sankaran Naren and Priyanka Khandelwal will be responsible for overseeing the scheme, which will be compared against the Nifty Rural Index TRI.
Available Plans:
Direct Plan
Regular Plan
Options:
Growth Option
Income Distribution – 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)