ICICI Prudential Mutual Fund has introduced the ICICI Prudential Quality Fund, an open-ended equity scheme based on the quality factor theme.
The fund is now open for investment, and investors can subscribe until May 20.
Who will manage the fund?
The fund will be jointly managed by Ihab Dalwai and Masoomi Jhurmarvala. Its benchmark will be the Nifty 200 Quality 30 TRI, meaning the fund will invest in stocks similar to those in this index.
Is there an exit load?
Yes, there is an exit load. If you withdraw your investment within 12 months, a 1% exit load will apply. However, there is no exit load if you withdraw after 12 months.
The fund offers both regular and direct plans, with options for growth and IDCW (Income Distribution cum Capital Withdrawal). IDCW allows investors to receive periodic payouts.
Where will the money be invested?
The fund will invest in financially strong companies with high Return on Equity (ROE), which indicates efficient use of shareholders’ money.
These companies will have strong cash flows, low debt, and good capital management. Fund managers will select stocks based on these criteria.
Performs well in all market conditions
S. Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, stated that the current economic environment is weak, with slowing growth.
In such conditions, companies with strong financial health and consistent profits are better investment choices. The ICICI Prudential Quality Fund aims to focus on such companies.
The goal is to buy quality companies at reasonable prices, ensuring a portfolio that performs well in various market situations.
Currently, quality stocks are available at attractive prices, making it a good time for investors to consider them.
Economic uncertainty is increasing
With rising interest rates, global tensions, and declining domestic earnings, economic uncertainty is growing.
ICICI Prudential AMC believes that quality stocks are more likely to perform well in such times, as these companies usually manage better during tough conditions due to their strong balance sheets and steady growth.
