Mutual Fund Analysis – ICICI Prudential Infrastructure Fund

Fund Manager: S Naren

Type & Investment Objective

An open-ended equity fund with a focus on capturing the opportunity presented by the long term growth potential of the Indian Infrastructure Sector. To invest across infrastructure sectors such as Cement, Power, Telecom, Oil and Gas, Construction, Banking etc.

Investment Strategy and Key Features

• To optimize the risk adjusted return by a mix of top-down macro and bottom-up micro research to pick up stocks providing long term potential.
• A multi-sector fund and therefore have a much less concentration risk than a typical sector fund.
• In the medium to long term huge investments are required in areas like Roads, Ports, Power, and Telecom etc. to sustain high economic growth. Apart from government spending, it will also require private participation to make significant progress on developing infrastructure.
• New initiatives such as Public-Private participation, increase in FDI limits and adequate funding support from the government have provided a tremendous boost to the system & therefore companies engaged in this sector have delivered robust performance in the last couple of years.
• Less concentration risk due to the presence of multi sector theme. Based on long term time horizon the fund provides a better investment opportunity.
• This fund has performed well in the recent fall in the market by taking active calls on cash and stocks

Scheme Features

• Options available: Growth and Dividend
• Minimum Investment amount: Rs. 5,000 and in multiples of Rs. 1
• Load Structure: Entry Load: 2.25% for < Rs. 5 Cr. and NIL for => Rs. 5 Cr.
• Exit Load: For < Rs. 5 Cr; 1% if redeemed before 6 months, 0.5% if redeemed bet. 6-12 months.
• Benchmark Index: S&P Nifty