ICICI Prudential launches new close-ended equity scheme

New fund offer will open for subscription from January 20 through February 7

ICICI Prudential Mutual Fund today said it will launch a close-ended equity fund with a three- year lock-in period.

The new fund offer, 'ICICI Prudential Equity Savings Fund series- 1', will open for subscription from January 20 through February 7.

As per the fund house, the scheme aims to adopt a focused approach on select high conviction stocks which are likely to gain from factors such as the improving economy, a favourable regulatory change, change in the industry dynamics or company specific factors.

It also said the scheme would invest in companies which are likely to see expansion in their return on equity over the next three years.

"The domestic economy with its latest macro indicators has been going through a rough patch causing equity markets, in general, and some very good quality, large companies, in particular, to be shunned by investors," MD and CEO Nimesh Shah said.

He added that these companies could be ones which are best poised for a bounce-back at the first sight of an improving economy...We thus feel that it is an opportune time to make the most of modest equities that will be greatly impacted by the upcoming turn of positive economy indicators.

"The fund house also said that the scheme would also be valid for tax benefit under the RGESS.

"ICICI Prudential MF is the joint venture between ICICI Bank and UK-based financial services group Prudential Plc, in which ICICI Bank holds the majority stake."

It has an average assets under management of Rs 97,190 crore by the end of December quarter of this fiscal.