ICICI Prudential Mutual Fund has announced a new fund offer (NFO) for Bharat Consumption Fund – Series 5, a close-ended equity scheme with a maturity of 1100 days. The NFO period of the scheme began on November 7 and will end on November 21, 2018. This close-ended scheme is a thematic one, focusing on consumption and will mainly invest in the stocks of consumption related companies. In a close-ended scheme, investors are only allowed to invest during the NFO period. Redemption of units occurs on maturity, i.e. after 1100 days from allocation of units.
The scheme will invest in sectors such as consumer non-durables (dairy products, bakery), consumer electricals, pharmaceuticals, paint, among others. The fund has advanced the following reasons for investment in it, among others:
1. Favourable Demographics: India’s relatively young population provides a rising base of consumers.
2. Urbanisation: Rapid urbanisation leads to rising consumption
3. Millennials have a higher propensity to consume
4. Headwinds of previous years such as GST, demonetisation and poor monsoons are behind us.
ICICI Prudential Bharat Consumption Fund – Series 5 will use the Nifty India Consumption Index as a benchmark. The benchmark used for this scheme is a more theme-appropriate one, as compared to the Nifty 200 Index which is the benchmark used for a similar consumption themed scheme Mahindra Rural Bharat and Consumption Yojana launched by Mahindra Mutual Fund.
| Index Name | 1 Year Total Returns (%) | 5 Year Total Returns (%) |
| Nifty India Consumption Index | -1.03 | 13.29 |
*The returns data is as per data retrieved on 31st October, 2018
Asset allocation in the scheme:*
| Instrument | Allocation Range |
| Companies linked to the consumption theme | 80 – 100 percent |
| Other companies | 0 – 20 percent |
| Debt and money market instruments | 0 – 20 percent |
*Source: Scheme Information Document of ICICI Prudential Bharat Consumption Fund – Series 5
The scheme may also take exposure of up to 50 percent to derivative instruments, American depositary receipts (ADRs), Global depositary receipts (GDRs), overseas ETFs or foreign securities. Additionally, the scheme may also invest in securitized debt and stock lending, but will not be engaged in short selling and credit default swaps, among others.
ICICI Prudential Bharat Consumption Fund – Series 5 will be jointly managed by ICICI Prudential AMC’s (Asset Management Company) co-head of equities, Sankaran Naren, Roshan Chutkey and Priyanka Khandelwal. The scheme does not have any exit loads and is proposed to be listed on the BSE.
The following are key details regarding the ICICI Prudential Bharat Consumption Fund – Series 5:
| NFO Period | November 7 – November 21, 2018 |
| Minimum Investment | Rs. 5000 |
| Benchmark | Nifty India Consumption Index |
| Fund Managers | Sankaran Naren, Roshan Chutkey, Priyanka Khandelwal |
Other Funds by ICICI Prudential Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| ICICI Prudential US Bluechip Equity Fund | 17.56 | 155.44 | Sectoral/Thematic Fund |
| ICICI Prudential Technology Fund | 16.88 | 366.24 | Sectoral/Thematic Fund |
| ICICI Prudential FMCG Direct Plan | 12.83 | 389.29 | Sectoral/Thematic Fund |
| ICICI Prudential Banking and Financial Services Fund | 12.82 | 2703.9 | Sectoral/Thematic Fund |
| ICICI Prudential Nifty Index Fund | 11.59 | 327.6 | Large Cap Fund |
| ICICI Prudential Asset Allocator Fund (FOF) | 10.5 | 5.74 | Balanced Hybrid Fund |
| ICICI Prudential Bluechip Fund | 10.45 | 17141.91 | Large Cap Fund |
| ICICI Prudential Constant Maturity Gilt Fund | 10.08 | 26.27 | Gilt Fund with 10 year constant duration |
| ICICI Prudential Balanced Advantage Fund | 10.06 | 27123.16 | Dynamic Asset Allocation or Balanced Advantage |
| ICICI Prudential Long Term Bond Fund | 9.89 | 1223.84 | Long Duration Fund |
| ICICI Prudential Global Stable Equity Fund (FOF) | 9.81 | 90.62 | Sectoral/Thematic Fund |
| ICICI Prudential Regular Savings Fund | 9.62 | 1355.69 | Conservative Hybrid Fund |
| ICICI Prudential Regular Gold Savings (FOF) | 9.49 | 44.61 | Gold Funds |
| ICICI Prudential Long Term Equity Fund (Tax Saving) | 9.18 | 5299.48 | ELSS |
| ICICI Prudential All Seasons Bond Fund | 9.09 | 2286.07 | Dynamic Bond Fund |
| ICICI Prudential Gilt Fund | 8.96 | 743.86 | Gilt Fund |
| ICICI Prudential Credit Risk Fund | 8.88 | 10408.93 | Credit Risk Fund |
| ICICI Prudential Child Care Gift Fund | 8.88 | 477.69 | Aggressive Hybrid Fund |
| ICICI Prudential Multicap Fund | 8.52 | 2856.06 | Multi Cap Fund |
| ICICI Prudential Short Term Fund | 8.47 | 9123.29 | Short Duration Fund |
{Data as on Feb 19, 2020; Source: Value Research}