Bangalore 23rd October 2013:
Highlights
§ ICICI Prudential Value Fund is a 3 year close ended scheme of focused 25-30 high conviction stocks#
§ The fund will invest in good quality companies available at a discount to their true value.
§ The focused approach of investing in a limited number of stocks will allow the scheme to benefit from potential price movements
- The portfolio will be co-managed by Mr. S Naren, CIO and Mr. Mittul Kalawadia, Fund Manager.
§ ICICI Prudential has an existing track record of managing Value Oriented Funds (ICICI Prudential Discovery Fund also follows value investing philosophy and has a track record of 9 years).
§ Past experience has shown that investors have earned returns when investments are made in periods of low GDP growth. Such a similar situation exists today.
§ Value is a far bigger theme than any other theme in prevailing market conditions.
Mumbai, October 18, 2013 : ICICI Prudential Asset Management Company, one of India’s largest AMCs, has announced the launch of ICICI Prudential Value Fund Series Fund 1, a close ended equity fund that focuses on investing in stocks that trade at a discount to their true value.
The fund aims at adopting the ‘value investing’ approach where low priced stocks with justifiable higher fundamentals are identified and invested in with the aim of long – term capital appreciation.
Speaking on the launch of this fund and the thought behind it, Mr. Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company said, “Value investing, one of the most popular investment themes globally, is a far bigger theme than any other opportunity in India in prevailing market situation. This is mainly on account of four reasons (1) sharp valuation dispersion among sectors and market cap segments, (2) a number of ‘under-noticed’ value opportunities thrown up due to the currency volatility, (3) earnings upsides through incrementally higher capacity utilization across many sectors and (4) investing at a cyclical low in terms of GDP growth. Besides these four reasons, domestic challenges, the most compelling one of which is continuation of the reforms process, will crystallize post the 2014 union elections. The positive aspect to the elections in terms of reforms is that both parties, the current government in rule and the opposition, have understood that reforms have to continue in order for the country to retain and nurture foreign interest in the form of FDI and other investment inflows. Hence, using the value strategy in the current scenario makes further compelling sense. A close ended fund like the new ICICI Prudential Value Fund Series 1 is well positioned to capture this opportunity for investors”.ABnewswire
