You are here: Home » Markets » News
Business Standard

ICICI Prudential MF floats open-ended scheme based on business cycle

The fund will employ a top-down approach using macro indicators such as inflation, growth, and deficit, and scout for opportunities in the Nifty 500 universe. The NFO closes on January 12

Topics
ICICI Prudential Mutual Fund | Mutual Funds

Ashley Coutinho  |  Mumbai 

investment, investors, savings, mf, funding, tech, economy, gdp, aif, alternative investment fund, capital, startups, tech, savings, money, cash, shares, funds, equity
The exposure to small and midcap names will be minimal except at times when the fund house is bullish on the domestic cycle

ICICI Prudential MF has launched ICICI Prudential Business Cycle Fund, an open-ended scheme that aims to identify and invest in opportunities across sectors, themes, and m-caps, based on the prevailing business cycle.

The fund will employ a top-down approach using macro indicators such as inflation, growth, and deficit, and scout for opportunities in the Nifty 500 universe. The NFO closes on January 12.

“Most of the events that have a marked impact on the cannot be predicted. What we do is to keep looking at the business cycle, understand where we are placed in terms of that cycle to make an investment call,” said S Naren, ED and CIO of ICICI Prudential MF.

For example, he says, during March 2020 — when the witnessed a sharp correction — an investor whose approach was business cycle-oriented would have understood we are at a market bottom and central banks will step in to stem the market fall.

The investment decision and sectors in which the fund will have exposure to, will be largely guided by the business cycle.

The aim, he says, is to identify sectors and take exposure to names within them. At any given point in time, the fund will have exposure to 3-5 sectors and exposure within these sectors will be diversified in nature.

The exposure to small and midcap names will be minimal except at times when the fund house is bullish on the domestic cycle.

“More than the filters, we will be having a holistic approach with fund managers both from equity and debt side for portfolio construction. This is because business cycle evolves not only in the equity space, but also in debt and credit space,” said Naren.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, January 09 2021. 00:33 IST
RECOMMENDED FOR YOU
.