According to data, about 35% of the huge Indian population live in the rural areas, which makes it a population base of more than 90 crores, which is a far bigger number than the population of any country in the world sans China. Predictably, they account for a huge share of the Indian market in almost all markets – from FMCG to automobiles, from apparels to accessories, from consumer durables to pharmaceuticals, from agricultural inputs to financial services. Therefore, it is quite clear the vast segment of the Indian equities market ICICI Prudential Rural Opportunities Fund will be tapping for investment.
In the mutual fund industry, the year 2024 has been marked as a year of thematic funds. The first NFO of 2025 is also going to be a thematic fund. The objective of ICICI Prudential Rural Opportunities Fund is to create capital appreciation in the long term by investing in equities and equity-linked instruments of corporates that are active in India’s mammoth rural sector.
ICICI Prudential Rural Opportunities Fund: Suitable for whom
According to the ICICI Prudential, the ICICI Prudential Rural Opportunities Fund could be appropriate for those who are eager to tap the long-term wealth creation from the rural economy and allied sectors. The mutual fund house has picked the rural theme as the much-hyped growth story of India is linked to rural development. In fact, the country is dependent on the rural sector as it tries to turn into a global manufacturing hub, the management of ICICI Prudential thinks.
Features of ICICI Prudential Rural Opportunities Fund
Nature of fund: Equity oriented, Open-ended
NFO opens: January 9, 2025
NFO closes: January 23, 2025
Expense Ratio: 0.7%
Benchmark index: Nifty Rural Total Return Index
Minimum Investment (Lumpsum): Rs 5,000
Exit Load: 1% (if redeemed within 12 months)
Entry Load: None
Fund Managers: Sankaran Naren, Priyanka Khandelwal
Risks of ICICI Prudential Rural Opportunities Fund
This fund, like all equity funds, is subject to volatility in the markets. Since it is a thematic/sectoral fund, it could face risks associated with risks inherent in the sectors associated with the rural economy – viz, low growth in rural incomes, weather fluctuations leading to a dampening of agriculture etc. ICICI Prudential Rural Opportunities Fund is ranked “Very High” in the risk-o-meter.
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This NFO (New Fund Offering) from one of India’s largest mutual fund houses will open on January 9 and will remain open till January 25, 2025. As the name implies, ICICI Prudential Rural Opportunities Fund will invest in sectors which thrive on the demand and consumption patterns in rural India’s vast markets. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
