NFO : ICICI Prudential Focused Equity Fund

NEWS -The latest offering from the ICICI Prudential is an open-ended diversified equity fund - the “ICICI Prudential Focused Equity Fund”.The fund’s investment strategy will be to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalisation. If the total assets in this fund crosses Rs.1000 crore then more than top 20 large companies would be added to the portfolio.
Scheme Details
Issue Opening Date : April 8, 2008
Issue Closing Date : May 7, 2008
Mutual Fund Family : ICICI Prudential Asset Mgmt.Co. Ltd
Fund Class : Equity Diversified
Fund Type : Open-Ended
Investment Plan : Growth
Fund Manager : Prashant Kothari
Entry Load : 2.25 %
Exit Load : 1.00 %
Benchmark : S&P CNX Nifty
Minimum Investment : Regular Plan - Rs. 5000, Institutional Plan - Rs. 10 crore.
The fund has a straight forward strategy to invest in the top 20 companies from the NSE index. The fund is likely to deliver returns and behave like a large-cap index like Sensex and Nifty. The fund might be a reasonable choice for its predictable strategy and relative safety of the mega-cap stocks. This fund could be a worthy consideration for NFO fans, seeking an opportunistic bet on the market turnaround which can especially benefit this fund.

Views - The fund theme looks similar to Sundaram select focus , JM core 11 and other such funds which focus on a smaller number of stocks for investment. Since, the focus is on only 20 stocks there is a high risk- return probability. The focus is going to be on large caps. So, the risk is reduced to some extent.

SIP in a focus fund would be a better strategy than a bulk investment in this volatile phase. If you are not too keen on ICICI, you can choose from a proven focus fund to invest. Prefer direct investment in MF, as this will avoid incurring entry load on your investment.

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