ICICI Pru MF has launched an innovation fund NFO along with innovation theme.This fund will start accepting applications on his 10thth Closed on April and 24thth April 2023. This is a unique mutual fund that follows the theme of innovation rather than investing in specific indices, sectors or segments. In this article ICICI Prudential Innovation Fund NFO Details of the problem and whether to invest or avoid.
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ICICI Prudential Innovation Fund – NFO Issue Details
This is an open-ended mutual fund equity scheme. Here are the details of the NFO issue:
| The scheme will open | April 10, 23 |
| scheme close | April 24, 2023 |
| Schemes for continuous purchases/sales are reopened | Within 5 business days |
| Minimum amount | 5000 rupees |
| Minimum SIP | Rs 500 for 12 months |
| Fund’s NAV | Rs 10 during NFO period |
| entry road | none |
| exit road | 1% for redemption within 360 days |
| dangerous | very expensive |
| standard | Nifty 500TRI |
| fund manager | Vinayak Jayanath |
| Maximum TER | 2.00% |
What is the investment objective of ICICI Prudential Innovation Fund NFO?
This scheme is an open-ended thematic fund. The scheme’s objective is to generate long-term capital appreciation by investing primarily in corporate stocks and equity-related securities, as well as units of global mutual funds/ETFs that can benefit from innovation strategies and themes. is.
What is the allocation pattern for this mutual fund scheme?
The allocation pattern for this scheme is:
| instrument type | min % | Max % | risk profile |
|---|---|---|---|
| shares and equity-related securities of companies that embrace innovation Strategies & Themes & Overseas Securities that incorporate innovation strategy and theme |
80% | 100% | very expensive |
| Other stocks and stock-related instrument* |
0% | 20% | very expensive |
| Debt and money market securities | 0% | 20% | low to medium |
| Investment units issued by REITs and InvITs | 0% | Ten% | very expensive |
Why invest in the ICICI Prudential Innovation Fund NFO?
There are several reasons to invest in this fund.
1) This fund invests in companies that utilize new technologies and processes.
2) The fund will also invest in companies launching relatively new products and services.
Such companies can achieve significant growth in the short to medium term.
Why should I avoid the ICICI Prudential Innovation Fund NFO?
You should consider some of these risk/negative factors before investing.
1) The scheme invests primarily in equity instruments of companies engaged in, or expected to benefit from, the subject of innovation. Such innovations may be short-term and/or may not crystallize as expected.
2) As the scheme is thematic in nature, it is subject to risks associated with the theme of innovation. Thematic schemes have high concentration risk and high risk of capital loss. There are elements of long and unpredictable market cycles. Loss of value due to obsolescence or regulatory changes coupled with the structural rigidity of the scheme can lead to permanent loss of capital. Investing in thematic funds can therefore be subject to potentially high volatility and risk.
3) The scheme invests up to 20% in foreign equities, ADR/GDR etc. with geopolitical risk and foreign exchange conversion risk.
4) We cannot confirm the past performance of such thematic mutual funds, so we do not know if this new MF will perform well in the future.
5) Investors should read all risk factors before investing in such schemes.
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Should I invest in the ICICI Prudential Innovation Fund NFO?
The ICICI Prudential Innovation Fund follows the theme of innovation. Such schemes invest in companies that use new technology or that launch relatively new products and services. Investing in such companies can yield excellent returns in the short to medium term.
On the other hand, there is no guarantee that a company launching a new product or service will be truly profitable in the short term. Investors cannot assess how funds in this category will perform in the medium to long term.
If you are a high risk investor and are excited to invest in such an innovative themed mutual fund scheme, you can invest. Otherwise, such funds can be avoided.
The ICICI Prudential Innovation Fund NFO analysis is based on the SID on the SEBI website.
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Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years.
