Why ICICI Prudential Banking Is a Good Investment In 2020

Launched on 22 August 2008, the ICICI Prudential Banking Financial Services Fund is an open-ended equity scheme that seeks to create a long-term capital appreciation for its unitholders, which are primarily equity and equity-related companies. Investments are mainly made in equity and equity-related securities, in the banking and financial services sector.

The ICICI Prudential Banking Financial Services aims to maximize long-term capital gains of banking, financial and non-bank financial firms by investing in equities and equity-linked securities that are part of the banking and financial services industry. A large portion of the scheme’s assets will be invested in the stocks that make up the BSE Banks Index.

For details of the schemes managed by the fund manager:

  • It invests at least 80 percent of its total assets in banking and financial services companies’ stocks.
  • It invests in market capitalization.
  • The scheme uses a combination of growth and blends investment style.

Currently, the scheme is managed by Roshan Chutkey. Mr. Roshan Chutkey has been managing this fund since January 2018. There are three total schemes managed by the fund manager (2 are jointly managed).

Also, the fund manager who manages the scheme, the foreign investment is led by Ms. Priyanka Khandelwal.

Why should you invest in this scheme?

  • The scheme is ideal for investors seeking to focus on opportunities in the Indian banking and financial services industry.
  • The plan invests opportunistically, below the benchmark.
  • The sector is a proxy for India’s growing economy, as it affects every part of the economy.
  • It is a fund that invests mainly in the share of banks and financial services firms.

We feel that investors should avoid funds with such a narrowly defined investment mandate. Instead, they should invest in multi-cap funds, which give the fund management team full freedom to invest in companies from which it expects maximum returns.

Investors have macro-trend knowledge and prefer to take the targeted risk for higher returns relative to other equity funds. At the same time, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to high losses on their investments.

Exit load in this scheme

 If units purchased or switched in from another plan of the Fund are redeemed or switched out within 15 days from the date of allotment 1% of applicable NAV.

If units purchased or switched in from another scheme of the Fund are redeemed or switched out after 15 days from the date of allotment, no charge will be applicable.

Here are some scheme facts:

  • In the future, past performance may or may not be sustained and cannot be the basis for comparison of other investments.
  • Exit load is not considered for the computation of returns.
  • In case, the start/end date of the respective period is a non-business date (NBD), the NAV of the previous year is considered for calculating the return.