ICICI Prudential Mutual Fund launches Transportation and Logistics Fund
ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Transportation and Logistics Fund, an open-ended equity scheme predominantly investing in equity and equity related securities of companies engaged in transportation and logistics theme. The scheme may invest in sectors/stocks that form a part of Nifty Transportation and Logistics TRI which is also the benchmark of the offering. The scheme may follow a buy and hold approach and hence an investment horizon of minimum five years is recommended. NFO opens on October 06 and closes on October 20.Transportation and Logistics theme is considered as an engine for economic growth. The theme consists of industries broadly classified under three key sectors which are Auto Original Equipment Manufacturers (OEMs), Auto Components (Ancillaries), and Logistics. Auto sector today has emerged as a space which is no longer a luxury anymore. The Auto OEM sector with its presence across different products offers multiple investment opportunities including auto ancillaries. Given rising fuel prices and increased focus to reduce emissions, countries globally have adopted EVs in a significant manner. India is expected to follow suit thereby giving rise to multiple investment opportunities.
Chintan Haria, Head - Product Development and Strategy, ICICI Prudential AMC, said, “Transportation is an under-penetrated market in India. The new policy on logistics by the government underlines the key role played by the sector in the economic growth of the country. Formalization of the economy and positive correlation to GDP growth and the Government's initiatives to reduce costs and improve efficiency, all stand to benefit the sector in the coming years. With muted performance in the last couple of years, we believe the theme is coming out of the woods and there are more legs to recovery.”
The fund will be managed by Mr. Harish Bihani and Ms. Sharmilla D’Mello (for Overseas Investments).
This story originally appeared on: Muscle & Fitness - Author:Tax Cognition
