ICICI Mutual Fund has launched a new fund offer for ICICI Prudential Business Cycle Fund. It is open for subscription between December 29 and January 12. Here are the details of the fund. Read on!
What is a business cycle fund?
There is no separate mutual fund category as a business cycle fund. Such funds come under the thematic fund category as they follow a particular theme. Here, the theme is business cycles. The scheme will aim to take utmost benefit out of business cycles.
Business cycles mean upswings and downswings in the macroeconomic activity of the country. It can also be defined as different cycles of fluctuations in the GDP of a country. The cycles comprise various stages of recessions and expansion, depression and recovery, peaks and troughs.
The main objective of the ICICI Prudential Business Cycle Fund is “riding business cycles”. This means the fund manager(s) will take advantage of business cycles and act accordingly. The allocation will be across different sectors and at various stages of business cycles.
Indicative Asset Allocation
|Instruments||Indicative Allocation (% of net assets)||Risk Profile|
|Equity and equity-related instruments selected on the basis of business cycle||80||100||High|
|Other equity and equity-related instruments||0||20||Medium to High|
|Debt and Money market instruments, including Units of Debt oriented mutual fund schemes||0||20||Low to Medium|
|Preference shares or any other asset as may be permitted by SEBI from time to time||0||20||Medium to High|
|Units issued by REITs & InvITs||0||10||Medium to High|
There are two plans under this scheme: regular and direct. Under both plans, you will get the growth and dividend options. Dividend payout and dividend re-investment sub-options are also available under the ‘Dividend’ option.
Here are other important details of the fund:
|Name of the Fund||ICICI Prudential Business Cycle Fund|
|Type of Scheme||An open-ended equity scheme following investing stocks of different sectors riding on business cycles|
|Benchmark||Nifty 500 TRI Index|
|NFO Dates||Opens on December 29, 2020, and closes on january 12, 2020|
|Fund Manager||Anish Tawakaley, Ihab Dalwai, Manish Banthia, Priyanka Khandelwal|
|Minimum Application Amount/Minimum Purchase Amount (including switches)||Rs. 5,000 and in multiples of Re. 1 after that|
|Minimum Additional Investment (including switches)||Rs 1,000 and in multiples of Re 1 after that|
|Minimum SIP (monthly) Application Amount||Rs 100 and in multiples of Re 1 after that for minimum 6 instalments|
|Minimum Redemption Amount||Any Amount|
|Exit Load||1%: If redeemed on or before 12 months
Nil: If redeemed after 12 months
|Plans||Regular Plan and Direct Plan|
|Options||Growth and Dividend Option (Payout, Dividend Reinvestment Option)|
Mr Tawakaley has 24 years of experience in an equity research role. He has been associated with ICICI Prudential AMC since April 2016. Prior to this, he worked with Barclays India, Credit Suisse India and Alliance Bernstein in equity research roles.
Other schemes managed by him are:
- ICICI Prudential Bluechip Fund
- ICICI Prudential Value Fund – Series 13
- ICICI Prudential Bharat Consumption Fund – Series 1
- ICICI Prudential Bharat Consumption Fund -Series 3
- ICICI Prudential Manufacture in India Fund
- ICICI Prudential MNC Fund
Mr Dalwai started his career with ICICI Prudential AMC in April 2011 an investment analyst for equity funds.
Other schemes managed by him:
- ICICI Prudential Balanced Advantage Fund
- ICICI Prudential Multi-Asset Fund
- ICICI Prudential FMCG Fund
- ICICI Prudential Infrastructure Fund
- ICICI Prudential Value Fund – Series 15
Mr Banthia has 16 years of work experience and has been working with ICICI Pru AMC since October 2005. Past experiences include product development and fixed income investments, division.
Other funds managed by him are:
- ICICI Prudential Regular Savings Fund
- ICICI Prudential Equity Savings Fund
- ICICI Prudential Equity – Arbitrage Fund
- ICICI Prudential Balanced Advantage Fund
- ICICI Prudential Child Care Fund (Gift Plan)
- ICICI Prudential Ultra Short Term Fund
- ICICI Prudential Short Term Fund
- ICICI Prudential Bond Fund
- ICICI Prudential Long Term Bond Fund
- ICICI Prudential Credit Risk Fund
- ICICI Prudential Medium Term Bond Fund
- ICICI Prudential All Seasons Bond Fund
- ICICI Prudential Gold ETF
- ICICI Prudential Regular Gold Savings Fund(FOF)
- ICICI Prudential Debt Management Fund(FOF)
- ICICI Prudential Asset Allocator Fund(FOF)
- ICICI Prudential Moderate Fund(FOF)
- ICICI Prudential Thematic Advantage Fund(FOF)
- ICICI Prudential Retirement Fund (all plans)
Ms Khandelwal joined the AMC in October 2014 and mostly managed overseas investments.
- ICICI Prudential Global Stable Equity Fund (FOF)
- ICICI Prudential US Bluechip Equity Fund
Overseas portion of all schemes of the Fund that have a mandate to invest in overseas securities.
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