ICICI Prudential MF to launch transportation and logistics fund

Asset administration firm ICICI Prudential Mutual Fund has introduced the launch of a transportation and logistics fund, an open-ended fairness scheme investing in securities of firms engaged in transportation and logistics theme.

The new fund supply for ICICI Prudential Transportation and Logistics Fund will open on 6 October and shut on 20 October.

The scheme could put money into sectors or shares that type part of Nifty Transportation and Logistics Total Return Index (TRI), which can be the benchmark of the providing. The scheme could observe a purchase and maintain strategy and therefore an funding horizon of a minimal 5 years is really helpful.

According to the fund home, transportation and logistics theme is taken into account an engine for financial progress.

The theme consists of industries broadly categorised underneath three key sectors that are auto authentic gear producers (OEMs), auto parts (ancillaries) and logistics.

The auto OEM sector with its presence throughout totally different merchandise gives a number of funding alternatives together with auto ancillaries. Given rising gas costs and elevated focus to scale back emissions, international locations globally have adopted EVs in a big method. India is predicted to observe swimsuit thereby giving rise to a number of funding alternatives.

Chintan Haria, head-product growth and technique, ICICI Prudential AMC, mentioned, “Transportation is an under-penetrated market in India. The new coverage on logistics by the federal government underlines the important thing function performed by the sector within the financial progress of the nation. The formalization of the economic system and constructive correlation to GDP progress and the federal government’s initiatives to scale back prices and enhance effectivity, all stand to profit the sector within the coming years. With muted efficiency within the final couple of years, we consider the theme is popping out of the woods and there are extra legs to restoration.”

The fund home believes that formalization of economic system i.e. shift from unorganized to organized sector aids within the progress of logistics house.

India’s logistics market is estimated at $216 billion, out of which organized gamers contributed solely 3.5% ($6-7 billion) in FY2020.

Nifty transportation and logistics index efficiency offtake has simply begun and is predicted to proceed its upward trajectory, says ICICI Prudential Mutual Fund

The fund will probably be managed by Harish Bihani and Sharmilla D’Mello (for abroad investments).

The minimal utility quantity in the course of the NFO interval could be ₹5,000 and within the multiples of Re 1, thereafter.

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