ICICI Prudential Energy Opportunities Fund NFO: Review & NAV

Introduction

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'ICICI Prudential Energy Opportunities Fund'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About ICICI Prudential Energy Opportunities Fund - NFO

The ICICI Prudential Energy Opportunities Fund is an open-ended equity scheme that focuses on the energy industry and is introduced by ICICI Prudential Mutual Fund under its Assets Management Company (AMC), ICICI Prudential Asset Management Company Limited. It makes investments in both established and emerging energy companies to generate long-term capital growth. 

The lowest investment required to join is Rs.5000 for investors. The scheme is suitable for such investors who seek long-term success since it entails investing the majority of their assets in shares of organizations that deal in or are anticipated to profit from the growth of both conventional and novel energy and power sources. The scheme has a 1% Exit Load if redeemed within 90 days from the allotment date.

To learn about the fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

ICICI Prudential Energy Opportunities Fund - NFO Overview

The investment period for the Scheme is set for July 02, 2024, to July 16, 2024. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest in ownership and equity-related instruments of businesses involved in the exploration, production, distribution, transmission, and processing of both traditional and new energy, including but not limited to the oil and gas, utilities, and power industries and sectors. 

 

Fund Overview

Start Date	02 July 2024
End Date	16 July 2024
Allotment Date	Not later than 4 to 5 business days after the closure date of the NFO
VRO Rating	-
Expense Ratio	NA
Exit Load	1% if redeemed within 90 days and Nil after 90 days.
AUM (Fund Size)	NA
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	NIFTY Energy TRI
Min. Investment	Rs.5000
Risk	Very High
Short-term capital gains (STCG)	Returns taxed at 15% if redeemed before 1 year
Long-term capital gains (LTCG)	After 1 year, LTCG tax of 10% on returns of Rs.1 lakh+ in a financial year

 

How to invest in the NFO after the allotment date?

If you have missed participating in the NFO and now want to invest in the same, then after 4 to 5 working days post-closure date of the NFO; you will have the option to participate in its Mutual Fund by logging on to your demat account and search for “ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND- NFO” on NIFTY 500 TRI and invest with a minimum investment of Rs.5000.

The process usually takes 8 to 10 business days to apply in the Mutual Fund after the closure date.

To Open your Demat Account, Click Here.

 

 

The Objective of the Fund

The Scheme intends to give investors the chance to profit from long-term capital growth by purchasing stock and stock-related instruments from businesses that are involved in the exploration, production, distribution, transportation, and processing of both traditional and new energy, which includes but is not restricted to sectors and industries like oil and gas, utilities, and power. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Equities and equity-related instruments of businesses operating in the traditional and emerging energy industries	80	100	Very High
Other equity and equity-related securities	0	20	Very High
Debt, Units of Mutual Fund schemes, and Money market instruments	0	20	Low to Medium
REITs/InvITs Units	0	10	Very High

 

Peers of ICICI Prudential Energy Opportunities Fund 

Index / Debt Funds	1Y Return	AUM (Cr)
DSP Natural Resources and New Energy	57.58%	1173.06
Tata Resources & Energy	46.04%	646.34
SBI Energy Opportunities	-	8833.32

 

Risk Factors in Such Funds

• Geopolitical conflicts have the potential to cause disruptions in the energy resource supply chain, which could result in price swings.

• Rate movements generally will have an impact on the (NAV) of the Scheme(s), to the degree that they are invested in debt and money market instruments. While an increase in the rate of interest rates would negatively impact the NAV of the Scheme(s), a decrease in interest rates is anticipated to have the opposite effect.

• The schemes' overall returns may be significantly impacted by changes in the prices of the assets they have invested in, making them susceptible to price fluctuations as well.

• Innovations in energy storage and renewable energy sources are two examples of how technology is upending established energy markets and business structures.

• Environmental issues, such as pollution and climate change, put fossil fuel firms at risk for penalties and damage to their brand. They also increase demand for cleaner energy options.

 

Past Performance of Sectoral / Thematic Funds

Sectoral / Thematic Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Tata Digital India Fund - Direct Plan	53.31	39.24%	Very High Risk
ICICI Prudential Technology Fund - Direct Plan	206.66	34.33%	Very High Risk
Aditya Birla Sun Life Digital India Fund - Direct Plan	185.47	30.63%	Very High Risk

 

 

ICICI Prudential Energy Opportunities Fund NFO - Who can invest?

This fund is ideal for you if you are looking for long-term success since it entails investing the majority of its assets in shares of organizations that deal in or are anticipated to profit from the growth of both conventional and novel energy and power sources.

 

ICICI Prudential Energy Opportunities Fund NFO - Growth Fund Managers

• Mr. Anish Tawakley

• Ms. Sharmila D’mello
  
  

Conclusion

Targeting the traditional and renewable energy sectors, the ICICI Prudential Energy Opportunities Fund presents a strong investment option for capital appreciation over the long term. The fund is well-positioned to profit from the evolution and growth of the energy industry given India's expanding demand for energy, reforms to the government, and variety of investment options. The scheme has a very high risk. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision.

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.