Publish Date:
ICICI Prudential Mutual Fund has launched ICICI Prudential Strategic Metal and Energy Equity Fund of Fund.
It is an open-ended fund of funds scheme investing in units of underlying scheme - First Trust Strategic Metal and Energy Equity UCITS Fund.
ICICI Prudential Strategic Metal and Energy Equity Fund of Fund (the Scheme) is an open-ended fund of fund scheme that invests in the units/shares of First Trust Strategic Metal and Energy Equity UCITS Fund. The Scheme may also invest a certain portion of its corpus in domestic debt or money market securities and/or debt mutual fund schemes/liquid schemes of domestic mutual funds including that of ICICI Prudential Mutual Fund, in order to meet liquidity requirements from time to time.
However, there can be no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, ICICI Prudential Strategic Metal and Energy Equity Fund of Fund will hold an allocation of 95% to 100% of its assets in Units/shares of First Trust Strategic Metal and Energy Equity UCITS Fund, and 0% to 5% of its assets in Debt, Money market securities, debt mutual fund schemes/liquid schemes.
As per the Scheme Information Document, ICICI Prudential Strategic Metal and Energy Equity Fund of Fund will invest predominantly in units / shares of First Trust Strategic Metal and Energy Equity UCITS Fund.
The Scheme may also invest a certain proportion of its corpus in debt, money market securities, debt mutual fund schemes/liquid schemes, in order to meet liquidity requirements from time to time.
The objective of First Trust Strategic Metal & Energy Equity UCITS Fund (the Underlying Scheme) is to seek to provide investors with long term returns, through capital growth.
An investment in the Underlying Scheme should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. The Fund is expected to experience high volatility at times as a result of its investment strategies.
The Underlying Scheme will pursue an actively managed investment strategy. The Fund will seek to achieve its objective primarily through investment in a diversified portfolio of equity securities related to gold and oil which are listed or traded on regulated Markets worldwide.
The investment manager of the Underlying Scheme will identify the potential universe of gold and oil stocks in which to invest by screening for equity securities issued by companies deriving a substantial part of their income from, or having a substantial portion of their assets in gold and oil related sectors and industries and which may include companies involved in mining, exploration, and production of gold and oil.
The investment manager of the Underlying scheme may then create a diversified portfolio by including the largest gold and oil stocks in the investment universe by reference to market capitalization. The Underlying Scheme’s portfolio will consist of two ‘sleeves’ of up to 150 stocks each, one comprising of gold stocks and the other comprising oil stocks
ICICI Prudential Strategic Metal and Energy Equity Fund of Fund’s performance will be benchmarked against 50/50 blended benchmark index comprising NYSE Arca Gold Miners Index And the S&P Oil & Gas Exploration & Production Select Industry Index.
It will be managed by Ms Priyanka Khandelwal.
The NFO opens for subscription on January 17, 2022 and closes on January 31, 2022. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Payout of Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).