ICICI Prudential Mutual Fund has launched its open ended fund titled ICICI Prudential India Opportunities Fund. The NFO is open for subscription from December 26, 2018 to January 9, 2019.
The fund aims to add alpha to the portfolio over the long-term through bottom up stock picking, based on special situations. Talking about special situation in a press release, Nimesh Shah, MD&CEO, ICICI Prudential AMC said, “Special Situation refers to temporary crisis that a company, sector or an economy may face. Government action, regulatory changes, global events or uncertainties are some of the situations that can be turned into an investment opportunity.”
He further said, “In terms of a company, a special situation can be regulatory issues, consolidation in industry, increased competition, management change, unfavourable business cycle and macros. When it comes to sectors, there could be internal or external factors, which could present a special situation. Internal factors could be stress due to new entrant, intense competition amongst existing players or domino effect. On the other hand, external factors could be macro changes, government reforms & regulatory changes or global pressure. A change in economic scenario would account movements in macroeconomic variables which are the key proponents of the trends existing in the economy and can create special situation opportunities in companies and sectors.”
Shah said,” Special situations as a theme currently is a road less travelled among Indian investors. The aim here is to turn crisis points into opportunities for a long term investor. The core investment strategy is identifying companies in special situations which require rigorous 360 degree stock research.”
The benchmark for the Fund is Nifty 500 Index. S Naren and Roshan Chutkey will manage this fund.