The ICICI Prudential Energy Opportunities Fund is an open-ended equity mutual fund launched by ICICI Prudential Mutual Fund. This fund is specifically designed to provide investors with long-term capital appreciation by investing in the equity and equity-related instruments of companies involved in the energy sector, which includes both traditional energy sources such as oil and gas, as well as new and renewable energy industries.
Key Features:
- Type: An open ended equity scheme following the energy theme.
- Benchmark: Nifty Energy TRI.
- Investment Objective: The fund aims to generate long-term capital growth by investing in companies engaged in activities such as exploration, production, distribution, transportation, and processing of energy sources.
- Minimum Invsetment – The minimum investment amount for the New Fund Offer (NFO) is ₹5,000.
- Exit Load: An exit load of 1% is applicable if the investment is redeemed or switched out within three months from the date of allotment.
Sector Growth Drivers:
The ICICI Prudential Energy Opportunities Fund focuses on capitalizing on the growth potential within the energy sector, driven by the transition to renewable energy and government policies aimed at achieving net-zero emissions. This fund invests in a diverse portfolio across the energy value chain, including traditional oil and gas, renewable energy, and related sectors such as engineering, procurement, and construction firms.
The energy sector is expected to grow due to increasing demand for power, government reforms, and supportive policies. This growth is further bolstered by reasonable valuations compared to broader market indices, offering a compelling investment opportunity for those interested in the energy theme
Investment Rationale:
The ICICI Prudential Energy Opportunities Fund leverages the potential growth in the energy sector driven by the transition towards renewable energy and government initiatives targeting net-zero emissions. It provides investors with a diversified portfolio of companies across the energy value chain, making it an attractive option for those looking to invest in the energy sector for long-term gains.
Why Invest in the ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND?
- 1) India to witness a huge surge in energy demand over the coming years. Factors to contribute to energy demand :-
- 🔸 Households – Three basic necessities of today’s India, are Electricity, Transportation & Communication Networks. With rising per capita income and changing lifestyle, India is to witness a high demand for Auto, Electrical appliances etc leading to an increase in demand for energy.⚡️
- 🔸Housing & Urbanization– A pivotal focus for this Government is Housing for all. In effect, Government of India has announed building 3 crore new houses under PMAY. More houses means more demand for electrical appliances and electricity usage. House building and growing urbanization will increase the energy demand to a higher extent.⚡️
- 🔸Manufacturing – China’s shift from Agricultural to Manufacturing oriented economy led to a huge surge in the demand for power. Power demand during 2000-2010 period in China grew at 12% CAGR. India, in its journey, moved from agricultural to service oriented economy and Now is shifting towards Manufacturing. This shift towards Manufacturing likely to create huge demand for energy.⚡
Investment Strategy
Being an open ended Scheme, the Scheme will follow an active investment strategy. The primary investment objective of the Scheme is to generate long-term capital appreciation by creating a portfolio that is invested predominantly in domestic/ overseas instruments of companies engaged in and/or expected to benefit from the growth in traditional & new energy sectors & allied business activities. Examples of industries/sectors classified under ‘Energy’ are as follows:
- Coal
- Gas Transmission/Marketing
- LPG/CNG/PNG/LNG Supplier
- Lubricants
- Offshore Support Solution Drilling
- Oil Equipment & Services
- Oil Exploration & Production
- Oil Storage & Transportation
- Refineries & Marketing
- Trading – Coal
- Trading – Gas etc.
In addition to the above, the Scheme can also invest in domestic/ overseas securities of companies that are engaged in energy allied sectors including but not limited to Chemicals & Petrochemicals companies, industrial & capital goods companies that are engaged in energy consultancy, manufacturing pipelines used in energy sector, manufacturing electrical equipment’s for production, transmission & distribution of energy, companies engaged in bio energy value chain, companies making components of new energy, ancillary companies in power transmission & distribution space.
ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND (NFO) Details
| Particular | Details |
| NFO Open | 02 July 2024 |
| NFO Close | 16 July 2024 |
| NFO Re-Open | 23 July 2024 (Tentative) |
| Scheme TYPE | Open-Ended |
| Purchase Mode | Lumpsum & SIP both |
| Minimum Application Amount | ₹5000/- and any amount thereafter |
| Benchmark | Nifty Energy TRI |
| Fund Manager | Sankaran Naren and Nitya Mishra. The overseas investment will be managed by Sharmila D’Mello |
| Risk-o-meter | Very High |
ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND (NFO) contact us…
Benefits for Investors
Investing in the ICICI Prudential Energy Opportunities Fund offers several benefits:
- High Growth Potential: With the global shift towards renewable energy and increasing energy demands, the sector is poised for substantial growth.
- Diversification: The fund invests in a broad range of energy-related industries, providing a diversified portfolio.
- Professional Management: Experienced fund managers actively manage the portfolio to capitalize on emerging opportunities.
- Government Support: Policies aimed at achieving net-zero emissions and other energy reforms provide a supportive environment for growth.
- Attractive Valuations: Current valuations in the energy sector are favorable compared to broader market indices
The ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND is an open-ended equity scheme launched by ICICI Prudential Mutual Fund, An open-ended equity scheme is specifically designed to provide investors with long-term capital appreciation by investing in the equity and equity-related instruments of companies involved in the energy sector, which includes both traditional energy sources such as oil and gas, as well as new and renewable energy industries.
SIPs are good but even better when markets are HIGH
To Invest inICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND (NFO) contact us…
ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND (NFO) Objectives
- Long term wealth creation
- An equity scheme that predominantly invests in instruments of companies engaged in and/or expected to benefit from the growth in traditional & new energy sectors & allied business activities
Conclusion
This fund is ideal for investors looking to capitalize on the evolving energy landscape, which includes significant opportunities in both traditional and renewable energy sectors.
Considering the high valuations at the current juncture, we recommend systematic investing via Systematic Investment Plan (SIP).
For Details Reports Please download the Presentation, SID, KIM from below…
Risk Discloser – MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. The Scheme being sectoral in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risks. Investors should consult their financial advisers, if in doubt about whether the product is suitable for them. The product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
