After getting a good response from ICICI Prudential Value Fund Series 1 and Series 2, ICICI Prudential Mutual Fund is set to launch the third series of its three year closed ended equity fund called ICICI Prudential Value Fund Series 3. The NFO will open for subscription on February 28 and close on March 14.
ICICI Prudential Value Fund Series 1 collected Rs 643 crore while Series 2 mobilized Rs 400 crore in their NFOs.
In a press release, Nimesh Shah, Managing Director& Chief Executive Officer, ICICI Prudential MF said, “We are in an interesting period for investment in Indian equities. We have observed in the long term that whenever GDP growth has been low, investment in equities (e.g. Investing in the 2001-02 and 2002-03 period) delivered good returns. For a period marked by the highest GDP growth such as years of 2007-2008 and 2009-2010, it was the best period to sell equities. Basis this strong correlation, now is a good long-term period to look at value opportunities.”
“While the economy will get impacted from global measures and domestic challenges, the most compelling story of the continuation of the reforms process with a strong belief in FDI, will crystallize post the 2014 union elections. The change is likely to nurture foreign investment and will uplift the market. Hence, using the value strategy in the current scenario makes compelling sense”, he added.
Benchmarked against S&P BSE 500 index, the fund aims to provide capital appreciation by investing in a diversified portfolio of equities through fundamental analysis. The company’s press release said that the fund will focus on investing in stocks that trade at a discount to their true value.The minimum application amount is Rs 5000. Sankaran Naren and Chintan Haria will co-manage the fund.
