Mumbai: ICICI Prudential Mutual Fund has announced the launch of its latest offering, the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme focusing on the rural and allied sectors. The New Fund Offer (NFO) will open for subscription on January 9, 2025, and close on January 23, 2025.
This fund aims to generate long-term wealth by investing in equity and equity-related instruments of companies contributing to and benefiting from rural development. The scheme's investment universe includes sectors aligned with rural growth and is diversified across large, mid, and small-cap stocks.
Growth Opportunities in Rural India
Speaking on the launch, Sankaran Naren, Executive Director & Chief Investment Officer of ICICI Prudential AMC and fund manager for the scheme, highlighted the immense potential of rural India.
He remarked, “Rural India is the next theme that can have a transformational impact in the coming decade. Structural and cyclical economic factors, coupled with increased government focus on rural infrastructure and development initiatives, are likely to make this segment a significant contributor to economic growth. This scheme offers investors an opportunity to participate in India’s rural growth story.”
The fund will leverage developments across various rural initiatives, such as the Pradhan Mantri Awaas Yojana – Gramin (PMAY-G), Jal Jeevan Mission (JJM), and other government programs aimed at improving rural quality of life.
Key Features of the Fund
Flexibility in Sector Allocation: The fund can adjust its sectoral allocation based on prevailing market conditions, capitalizing on opportunities within the rural theme.
Benchmark: The scheme will track the Nifty Rural Index TRI, which evaluates the performance of the top 75 stocks within the rural theme.
Experienced Management: The fund will be managed by Sankaran Naren and Priyanka Khandelwal, supported by a skilled research team and robust investment processes.
Why the Rural Theme?
India’s growth story is deeply tied to its rural development. With rising rural demand and a focus on improving infrastructure and livelihood, rural India is undergoing a positive transformation. The scheme aims to capture this growth potential, which spans multiple sectors and market capitalizations, providing a diversified investment opportunity.
Subscription Details
NFO Period: January 9, 2025 – January 23, 2025
Investment Strategy: Focused on long-term wealth creation through equity and equity-related instruments in rural sectors.
