New Fund Offer: ICICI Prudential Housing Opportunities Fund – Key dates, details

The NFO may be suitable for investors looking for opportunities to participate in  potential growth of Housing theme.

ICICI Prudential Housing  Opportunities Fund
Representative image

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Housing Opportunities Fund. This is an open ended equity scheme aimed at providing long-term capital appreciation by investing in equity and  equity related instruments of entities engaged in and/or expected to benefit from  the growth in housing theme. 

Housing as a theme encapsulates various sectors like cement, consumer electronics, housing finance, banks, power, steel, LPG/CNG/PNG/LNG supplier etc. 

In a statement, ICICI Prudential MF said housing as a theme seems to be poised for a turnaround as the real estate  oversupply of 2008-2012 appears to be digested. This may lead to less pressure  on real estate prices thereby aiding housing as a theme to perform better. 

With the  number of Indians living in urban areas expected to reach 525 million by 2025 and  600 million by 2036, Real Estate sector in India is expected to reach USD $1 trillion  by 2030. The early signs of this is visible in the healthy growth of housing sales  volume (across seven major cities) which surged 113% YoY, signifying healthy  recovery post lockdown, the statement further said. 

Commenting on the launch of NFO, Chintan Haria, Head, Product  Development and Strategy, ICICI Prudential AMC said, “Housing as a theme, we  believe is at the cusp of a strong cycle. India’s favorable demographics, growing  middle class population, increased urbanization, better affordability and lower  home loan interest rates are creating a conducive environment for housing and allied themes.”

“Moreover, the Government. has been trying to stimulate activity in  the sector through various supportive measures like affordable housing, affordable  rental housing complex (ARCH) scheme, increase in capex, stamp duty cuts, 100%  FDI for townships and settlements development projects to name a few. India  being one of the fastest growing economies should see strong demand for housing  as was seen historically in other developed economies,” he added. 

NFO dates

The NFO will open on March 28, 2022 and close on April 11, 2022. 

The NFO may be suitable for investors looking for opportunities to participate in  potential growth of Housing theme in the country. S Naren  and Anand Sharma will be the fund managers of the Scheme. The benchmark of  the scheme is Nifty Housing TRI.

The minimum application amount at the time of NFO is Rs. 5,000 (plus in multiples  of Re.1).

(Mutual Fund investments are subject to market risks. Please consult your financial advisor before making investment decision)

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