ICICI Prudential Mutual Fund on Thursday announced the launch of ICICI Prudential Energy Opportunities Fund, an open-ended equity scheme that will predominantly invest in the energy theme.
This scheme aims to generate long-term capital appreciation by investing predominantly in equity and equity- related instruments of companies engaged in or benefiting from the growth in traditional and new energy industries/sectors, as well as allied businesses, the AMC said in a statement.
ICICI Prudential Energy Opportunities Fund NFO date
ICICI Prudential Energy Opportunities Fund NFO will open on July 2 and close on July 16, 2024.
As energy remains a critical driver of industrial and economic growth, this theme is expected to perform well both globally and domestically, it said.
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The energy theme encompasses a wide range of industries, including oil & gas, bio energy value chain, and lubricants, etc. The scheme has the flexibility to invest across energy value chains.
Energy theme offers significant growth potential
Speaking at the launch, ED & CIO of ICICI Prudential AMC and the fund manager of the offering, Sankaran Naren, said, “Energy is the cornerstone of industrial growth and economic development. With the ongoing transition towards renewable energy and the government’s focus on achieving net-zero emissions, the energy theme offers significant growth potential. Through this scheme, investors can gain access to a diversified portfolio of companies across the energy value chain.” Adding further on valuations and recent performance.”
“Although Nifty Energy Index has outperformed the broader market recently, the valuations remain reasonable, and investors may consider this scheme from a long-term perspective,” Naren said.
The scheme will be managed by Sankaran Naren and Nitya Mishra, and the benchmark for the scheme will be Nifty Energy TRI. ICICI Prudential Mutual Fund has one of the largest and most experienced investment teams in India. The fund managers are supported by a capable research team guided by sound investment process and risk management practices.
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Energy theme plays a major role in achieving growth targets.
India’s structural growth story is robust, with energy playing a major role in achieving growth targets. Energy demand is expected to rise over the next decade, driven by factors like climate change, premiumisation, a focus on manufacturing, and increasing per capita income.
Numerous companies are involved in the energy value chain, offering opportunities for a diversified portfolio. This decade-long theme favours long-term investments, making it suitable for investors with a long-term horizon to invest in the scheme.
