ICICI Prudential Mutual Fund Launches ICICI Prudential Energy Opportunities Fund NFO
Opens on 2 July 2024, and closes on 16 July 2024. The scheme is an open-ended equity scheme focusing on the energy theme, as energy remains a critical driver of industrial and economic growth, this theme is expected to perform well both globally and domestically. The energy theme encompasses a wide range of industries, including oil & gas, bio energy value chain, and lubricants, etc. The scheme has the flexibility to invest across energy value chains
ICICI Prudential Mutual Fund announces the launch of ICICI Prudential Energy Opportunities
Fund, an open-ended equity scheme that will predominantly invest in the energy theme. This scheme aims to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies engaged in or benefiting from the growth in traditional and new energy industries/sectors, as well as allied businesses.
Speaking at the launch, ED & CIO of ICICI Prudential AMC and the fund manager of the offering, Sankaran Naren, observed, “Energy is the cornerstone of industrial growth and economic development. With the ongoing transition towards renewable energy and the government's focus on achieving net-zero emissions, the energy theme offers significant growth potential. Through this scheme, investors can gain access to a diversified portfolio of companies
across the energy value chain.” Adding further on valuations and recent performance, he says, “Although Nifty Energy Index has outperformed the broader market recently, the valuations remain reasonable, and investors may consider this scheme from a long-term perspective.”
Data as on June 14, 2024. Source: NSE. P/E: Price to Earnings, P/B: Price to Book Value
The scheme will be managed by Sankaran Naren and Nitya Mishra, and the benchmark for the scheme will be Nifty Energy TRI. ICICI Prudential Mutual Fund has one of the largest and most experienced investment teams in India. The fund managers are supported by a capable research team guided by sound investment process and risk management practices.
Why Energy Theme
India's structural growth story is robust, with energy playing a major role in achieving growth targets. Energy demand is expected to rise over the next decade, driven by factors like climate change, premiumisation, a focus on manufacturing, and increasing per capita income. Numerous companies are involved in the energy value chain, offering opportunities for a diversified portfolio. This decade-long theme favours long-term investments, making it suitable for investors with a long-term horizon to invest in the scheme.
Investment Universe of the Scheme*
1. Power Ancillaries - Energy EPC, Power T&D value, Heavy Electrical Equipment, Energy efficiency plays (manufacturing electrical equipments for production, transmission & distribution of energy)
2. Oil Value Chain - Upstream (Oil Exploration & Production), Integrated refining and marketing (Refineries & Marketing), Standalone refining (Refineries & Marketing), downstream petrochemicals (Chemicals & Petrochemicals companies) and base oil processors (companies engaging in activities such exploration, production, distribution, transportation and processing of traditional & new energy), lubricants, oil field services (Oil Equipment & Services)
3. Green Energy - Companies undergoing energy transition, Solar value chain, Wind power value chain, Hydrogen value chain, Battery value chain (companies making components of new energy), Bio energy value chain (companies involved bio energy value chain), alternate fuel (companies making components of new energy)
4. Gas Value Chain - Gas transmission (Gas Transmission/Marketing), LNG terminal (LPG/CNG/PNG/LNG Supplier), City gas distribution (LPG/CNG/PNG/LNG Supplier)
5. Power Value Chain - Coal producer (Coal), power generation, power transmission, power trading
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