ICICI Prudential Mutual Fund has launched the ICICI Prudential Quality Fund, an open-ended equity scheme that follows the quality factor theme. This new fund offer is now open for investment, and investors can subscribe to it until 20 May.
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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, which means the fund will invest in stocks similar to those included in this index.
Is there an exit load?
Yes. If you withdraw your money within 12 months of investing, a 1% exit load will be charged. An exit load is a fee for early withdrawal. However, if you take out your money after 12 months, there is no charge.
The fund offers both regular and direct plans, and investors can choose either. Both plans come with growth and IDCW (Income Distribution cum Capital Withdrawal) options. IDCW means you will receive periodic payouts from your investment.
Where will the money be invested?
The fund will invest in financially strong companies. These companies will have a good Return on Equity (ROE), which shows how much profit they make from shareholders’ money.
They will also have strong cash flows, meaning they manage money coming in and going out efficiently. Additionally, they will have low debt and will use their capital wisely. The fund managers will select shares based on these factors.
Performs well in all types of markets
According to S. Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, the current economic environment is weak, and growth is slowing down.
In such times, companies that are financially healthy and consistently profitable are better investment options. The ICICI Prudential Quality Fund aims to invest in such firms.
The goal is to buy quality companies at reasonable prices to build a portfolio that can perform well in all kinds of market situations. Right now, quality stocks are available at attractive prices, making it a good time for investors to focus on them.
Economic uncertainty is rising
There is growing economic uncertainty around the world due to issues like rising interest rates, tensions between countries, and falling domestic earnings. ICICI Prudential AMC believes that quality stocks are more likely to do well in such situations.
These companies usually manage better during tough times because they have strong balance sheets and steady growth.