ICICI Prudential Launches Rural Opportunities Fund to Tap Rural Growth

ICICI Prudential Mutual Fund has launched the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme focusing on rural and allied sectors. The New Fund Offer (NFO) will open on January 9, 2025, and close on January 23, 2025. The fund primarily aims to invest in companies contributing to and benefiting from the growth and development of rural India.

Objective and Benchmark

The scheme seeks long-term wealth creation by investing predominantly in equity and equity-related instruments of companies in rural and allied sectors. It will be benchmarked against the Nifty Rural Total Return Index (TRI), which tracks the top 75 rural-themed stocks from the Nifty 500 based on market capitalisation.

Why Invest in Rural India?

• Rural development is central to India’s economic growth, contributing significantly to GDP.
• Structural improvements, government initiatives, and increased demand in rural areas present strong growth potential.
• The rural theme spans various sectors and market caps, offering diversification and flexibility.

Key Features of the Fund

• Focus on Rural Theme: Targets sectors benefiting from rural demand and development.
• Diversified Portfolio: Investments spread across large-cap, mid-cap, and small-cap stocks.
• Dynamic Allocation: Flexible sector allocation based on market conditions to optimise opportunities.

Plans and Options

• Plans: Direct and Regular Plans
• Options:
  • Growth Option
  • Income Distribution cum Capital Withdrawal (IDCW)

Investment Details

• Minimum Investment: ₹5,000 (plus multiples of ₹1)
• Additional Investment: ₹1,000 (plus multiples of ₹1)
• Minimum Redemption: Any amount

Fees

• Entry Load: Not applicable
• Exit Load:
  • 1% of NAV if redeemed within 12 months
  • No exit load after 12 months

Investment Facilities

• SIP (Systematic Investment Plan)
• SWP (Systematic Withdrawal Plan)
• STP (Systematic Transfer Plan)

This new scheme allows investors to participate in India’s rural growth story, potentially leveraging government efforts and economic shifts to generate long-term wealth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.