This is a mutual fund that concentrates on investing in the banking and financial services sector. It can invest as much as 70% in banks and 25% in NBFCs. It also provides investors with the opportunity to create wealth over a long term. It features facilities like 0 entry loads, systematic investment plans, systematic withdrawals and transfers too. Investments in this fund can either be made in lump sums or in monthly/quarterly instalments.
Type or nature of fund
This is an open-ended sectoral fund
The objective of this fund is to concentrate investments in the banking and financial services sector with the aim of providing long term wealth creation. It also may invest a small amount in short term debt instruments as a defence measure aging erratic movement in the equity markets.
|Inception date||22 August 2008|
|CRISIL rank||This product has not been rated by CRISIL|
|Plans||Regular and Direct|
|Options||Growth and Dividend with the default option being dividend reinvestment|
|Entry load||Nil. However, if the investment is made through an authorised distributor then the investor will have to pay them a commission.|
|Exit load||1% if the amount being withdrawn or switched has been invested for less than a year.|
|Benchmark||S&P BSE BANKEX This is an index that is made up of companies that are a part of BSE 500 and are classified as banks.|
|SWP||The minimum systematic withdrawal plan is Rs. 500.|
|STP||Available. The minimum STP out amount is Rs. 1,000 and the maximum tenure 10 years|
|Redemption||The minimum amount that can be withdrawan is Rs. 500.|
- Education: MBA from IIM Calcutta and CFA from AIMR USA
- Past experience:
- ICICI Prudential Asset Management Limited – PMS Fund Manager
- ICICI Prudential Asset Management Limited – Equity Analyst
- AIG Global Asset Management India Limited - Equity Analyst -
- J.P.Morgan India Private Limited - Equity Analyst
- Other funds managed
- ICICI Prudential Dividend Yield Equity Fund
- ICICI Prudential Select Large Cap Fund
- ICICI Prudential Multiple Yield Funds
- ICICI Prudential Capital Protection Oriented Funds
- ICICI Prudential Growth Fund Series 2
- ICICI Prudential Growth Fund Series 4
- ICICI Prudential Growth Fund Series 5
- ICICI Prudential Growth Fund Series 6
Investment philosophy or strategy
The investment philosophy of this fund is to invest primarily in the banking sector. It will also allocate a sizeable amount of investment in the financial services sector and a small amount for short term debt instruments. To pick the stocks for investment, the fund adopts a bottom-up strategy.
Portfolio (As of June 30, 2015)
|Short Term Debt & Net Current Assets||4.22%|
|Std deviation||23.92% (annual)|
|AUM||Rs. 841.73 crores (As of June 30, 2015)|
|NAV (As of June 30, 2015)||
|2014-2015 (Absolute Returns)||2013-2014 (Absolute Returns)||2012-2013 (Absolute Returns)||Compound Annual Growth Rate (Since Inception)|
|NAV (in Rs.)||30.8||21||17.59||-|
If someone had invested an amount of Rs. 10,000 when this fund was first introduced, the value of that investment today would be Rs. 37,090 as per the schemes performance. Had the same amount been invested directly then its value according to Nifty would have been 19,338.18 and 31,524 according to the benchmark.
Expert view of the fund
This is a fund that offers a high risk investment opportunity to investors. It also is meant for those who are looking to create wealth and are ok with the risk factor. In terms of returns, the fund has outperformed Nifty consistently between 2013 and 2015. It has even outperformed its benchmark in the same period, especially in 2013-14, where it gave absolute returns of 46% against the returns of the benchmark of 32%.
How to apply
There are two ways in which investors can apply for this fund. The first is to apply for it online. To do that, they can visit the ICICI Prudential website where they will have to register as new or existing investors. Once they have completed the registration process, they will be able to invest in this fund.
The other method is to apply for this fund offline where the investors can approach the ICICI Prudential branches and get help with filling out the forms and fulfilling any other paperwork as required. They can also pay for the investments through debit cards, cheques, demand drafts or NEFT and RTGS transfers. The investments made in this fund can either be lump sums or SIPs.
GST rate of 18% applicable for all financial services effective July 1, 2017.