ICICI Prudential Mutual Fund launches Energy Opportunities Fund

Published on Jul 03, 2024 15:01

ICICI Prudential Mutual Fund announced the launch of the "ICICI Prudential Energy Opportunities Fund," a new open-ended equity scheme focusing on the energy sector.

The fund, open for subscription from July 2nd to July 16th, 2024, aims for long-term capital growth by investing in stocks and similar financial instruments of companies involved in traditional and renewable energy exploration, production, distribution, transportation, and processing. This includes sectors like oil & gas, utilities, and power. Managed by Sankaran Naren and Nitya Mishra, the scheme will benchmark its performance against the Nifty Energy TRI.

The fund requires a minimum investment of Rs 5,000 with subsequent investments in multiples of Rs 1. An exit load of 1% NAV applies only to redemptions within 3 months, and the fund strategically allocates its investments across traditional and new energy sectors (80-100%), other equity and equity-linked instruments (up to 20%), debt, mutual fund units, and money market instruments (up to 20%), and REIT/InvIT units (up to 10%).

India`s commitment to net zero emissions by 2070 necessitates a major shift towards renewable energy, opening up investment opportunities in the energy sector. This trend is expected to be long-lasting as India`s economic growth will require more power, driving the need for clean energy solutions. Investors with a long-term outlook on India`s growth story may find this a compelling investment theme.