The ICICI Prudential Banking and Financial Services Fund is an open-ended sectoral equity fund primarily invested in equity and equity-related securities of banking and financial services companies. Asset management company ICICI Prudential says India’s banking sector has long-term prospects due to low penetration and rising profits. ICICI Prudential Mutual Fund said, more people will enter the banking system, and the financial industry will see growth in new-age industries such as insurance, mutual funds, stockbroking, and wealth management.
The ICICI Prudential Banking and Financial Services Fund adopts a “bottom-up” approach to define and select its investments by market capitalization. One can start investing in this scheme with a small portfolio of Rs 5,000. The fund has the option of both dividend and growth and a straightforward strategy for investors who want to invest in the fund without any intermediary. Direct plans provide higher returns than regular plans.
Scheme Fund Manager
Roshan Chutkey (managing this fund since January 2018 and 11 years of experience in total). Apart from the fund manager who manages the fund, the foreign investment is led by Ms. Priyanka Khandelwal.
ICICI Prudential mutual fund Scheme Details
- Fund Type: OPEN
- Inception Date: 09-07-2008
- AMC Name: ICICI Prudential mutual fund
- Minimum Investment: Rs. 5000
- Expense Ratio: 2.11
- Minimum Additional Application Amount: Rs. 1,000
- Minimum Redemption Amount: Rs 500
- Minimum Redemption amount: Rs 500
- Minimum Application amount: Rs 5000 (plus in multiples of Rs 1)
Exit load is: 1.00% will be charged if units purchased or swapped from another fund scheme are redeemed or switched within 15 days of the date of allotment.
No fees will be applied to units purchased or swapped from other fund schemes within 15 days of the allocation date.
Suitability for ICICI Prudential Banking and Financial Services Fund
- The scheme is suitable for investors who want to focus on opportunities in India’s banking and financial services sector.
- The banking and financial services sector is a proxy for India’s growing economy, as it affects every aspect of the economy.
- It provides an opportunity for investors to invest in all market caps with an average investment horizon of 5 years or more.
ICICI Prudential Banking and Financial Services – Portfolio of scheme
Portfolio Creation: The plan will invest at least 80 percent of its total assets in stocks of banking and financial services sector companies, including finance, brokerage, asset management, wealth management, insurance, non-bank financial companies (NBFC) are included. And other companies may be engaged in providing financial services.
Benchmark Agnostic: While the scheme’s performance is against the Nifty Financial Services Index, it may make opportunistic investments in external companies.
Approach to investment: This scheme invests through market capitalization and mixes development and investment style.
Note: If the unitholder selects the dividend payout option, the minimum amount of the dividend payout is 100 (net of dividend distribution tax and other statutory levies, if any); otherwise, the dividend will be reinvested.