Finance Way 
ICICI Prudential Mutual Fund Launches ICICI Prudential Rural Opportunities Fund: A New NFO Focused on Rural India
ICICI Prudential Mutual Fund has launched the ICICI Prudential Rural Opportunities Fund, an open-ended equity scheme aimed at investing in the growth and development of rural and allied sectors in India. This new fund offers investors an opportunity to participate in India’s rural growth story, potentially generating long-term wealth by capitalizing on government efforts and economic transformations. The New Fund Offer (NFO) will open on 9th January 2025 and close on 23rd January 2025.
Objective and Benchmark
The primary goal of the ICICI Prudential Rural Opportunities Fund is to create long-term wealth by investing in equity and equity-related securities of companies that benefit from the growth and development of rural India. This will be achieved by focusing on businesses that are directly involved in or contribute to the rural economy.
The fund will be benchmarked against the Nifty Rural Total Return Index (TRI), which tracks the top 75 rural-themed stocks from the Nifty 500, based on market capitalization. The index provides a broad representation of rural-centric companies across various sectors, ensuring a diversified approach to investing in rural India.
Why Invest in Rural India?
Rural development is a key driver of India’s economic growth and contributes significantly to the nation’s GDP. Over the past decade, structural reforms, government initiatives, and rising demand in rural areas have created strong growth potential. The rural theme spans various sectors—from agriculture and infrastructure to FMCG and financial services—offering diversification and resilience.
Key Features of the Fund
The ICICI Prudential Rural Opportunities Fund will focus on sectors that benefit from rising demand and development in rural India. The fund’s strategy includes investments across small-, mid-, and large-cap stocks, ensuring that the portfolio remains well-diversified.
Key features of the fund include:
- Dynamic Allocation: The fund will adopt a flexible sector allocation strategy, adjusting based on prevailing market conditions to optimize opportunities within rural-focused sectors.
- Sectoral Focus: The fund will focus on sectors such as agriculture, infrastructure, rural healthcare, FMCG, and rural financial services, which are all integral to the development of rural India.
Plans and Options
Investors can choose from Direct and Regular Plans with the following options:
- Growth Option
- Income Distribution cum Capital Withdrawal (IDCW)
Investment Details
- Minimum Investment: ₹5,000 (including multiples of ₹1)
- Additional Investment: ₹1,000 (including multiples of ₹1)
- Minimum Redemption: Any amount
Fees
- Entry Load: None
- Exit Load:
- 1% if redeemed within 12 months from the date of investment
- No exit load after 12 months
Investment Facilities
The ICICI Prudential Rural Opportunities Fund offers several convenient investment options, such as:
- SIP (Systematic Investment Plan)
- SWP (Systematic Withdrawal Plan)
- STP (Systematic Transfer Plan)
Why Choose This Fund?
The ICICI Prudential Rural Opportunities Fund offers investors the chance to tap into the burgeoning rural economy of India. With government initiatives and structural reforms driving growth in the rural sector, this fund allows you to invest in sectors poised for long-term growth. By focusing on companies benefiting from rural demand, the fund aims to provide strong risk-adjusted returns in the long run.
This scheme is ideal for investors looking for diversification, growth potential, and a balanced approach to investing in India’s rural economy.
Disclaimer
This blog is written for educational purposes only. The securities listed are not suggestions; they are only samples. It is not intended as personalized advice or an investment recommendation. Recipients should conduct their own research and make independent decisions before making any investment. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully.
