New Fund Offer: ICICI Prudential Rural Opportunities Fund launched – Should you invest?

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme following rural and allied theme. The scheme will open for subscription on January 9, 2025, and close on January 23, 2025.

The scheme shall predominantly invest in sectors contributing to and benefiting from rural India’s growth and development. This scheme aims to generate long-term wealth creation by investing predominantly in equity and equity-related instruments of companies involved in rural and allied sectors. It has the flexibility to change allocation to sectors within the rural theme based on the market conditions to capitalize on market opportunities.

Speaking at the launch, ED & CIO of ICICI Prudential AMC and the fund manager of the offering, Sankaran Naren observed, “Rural India is the next theme that can have a transformational impact in the next decade. Driven by structural and cyclical economic factors and also due to many state governments’ increased focus on rural development through various initiatives, it is likely going to be the segment that will contribute to economic growth. Therefore, our new scheme aims to leverage these developments, offering investors a chance to partake in India’s rural growth story.”

Scheme Features

Why Rural Theme?

India’s growth story is intricately tied to its rural development. As the country aspires to become a global manufacturing hub, rural India plays a pivotal role in this transformation. The government has made significant strides in improving basic necessities and the quality of life in rural areas, paving the way for broader developmental efforts. With rural demand rebounding after a decade of stagnation and undergoing positive structural changes, the rural theme holds promise. Its broad scope spans multiple sectors and market-caps, offering flexibility and growth potential across the economy.

Benchmark – Nifty Rural Index

The Nifty Rural Index aims to track the performance of stocks from the Nifty 500 Index, which represents the rural theme. The largest 75 stocks from eligible basic industries are selected based on 6-month average free-float market capitalization.

Sankaran Naren and Priyanka Khandelwal will manage the scheme, which will be benchmarked against the Nifty Rural Index TRI. The fund managers are supported by a capable research team guided by sound investment processes and risk management practices.