Upcoming NFO: ICICI Prudential Mutual Fund Files Draft for iSIF Sector Rotation Long-Short Fund

ICICI Prudential Mutual Fund had filed a draft investment strategy information document for the iSIF Sector Rotation Long-Short Fund.  

The strategy aims to generate long-term capital appreciation through equity and equity-related investments. Its portfolio will hold up to four sectors. 

Investment Approach 

The fund will follow an active investment approach. Sector allocation will depend on macroeconomic trends, sector-specific news and fundamental parameters. It can take long and short positions through stocks, baskets of stocks and stocks or index derivatives. 

The document lists 12 sectors, including commodities, financial services, information technology, services, energy, healthcare, industrials, consumer discretionary, fast-moving consumer goods, telecommunications and utilities.  

The list may change as notified by AMFI. 

Portfolio Allocation 

Equity and equity-related instruments will account for 80% to 100% of assets, across no more than four sectors. Unhedged short positions through derivatives can reach 25% of net assets. 

Overseas investments can account for up to 35% of net assets. These may include foreign securities, bonds, mutual funds, exchange-traded funds, Global Depository Receipts and American Depository Receipts.  

Debt and money market instruments, including debt-oriented mutual fund units, can account for up to 20% of assets. The strategy may also invest up to 20% in Infrastructure Investment Trusts. 

Fund Manager and Benchmark 

Sankaran Naren, Executive Director of ICICI Prudential Asset Management Company, has been named fund manager. The strategy will be benchmarked against the Nifty 500 Total Return Index, which covers large, mid and small-cap stocks. 

Minimum Investment and Exit Load 

The minimum investment across iSIF strategies is ₹10 lakh per investor at the Permanent Account Number level.  

An exit load of 1% of the applicable net asset value will apply to redemptions or switch-outs within 12 months of allotment. No exit load will apply after 12 months. 

Risk Factors 

The document identifies sector concentration, market volatility and liquidity as risks. It states that the investment objective is not assured and investors may lose capital. 

Read More: SEBI to Make Direct Mutual Fund Plans the Default on AMC Platforms From November 1! 

Conclusion  

The draft document outlines the fund's investment allocation, sector exposure and redemption terms. The strategy will be benchmarked against the Nifty 500 TRI. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.