ICICI Prudential Mutual Fund announced the launch of ‘Manufacture in India Fund’, an open-ended equity scheme with an objective to invest in companies which are engaged in manufacturing theme. The Scheme aims to capture the increasing contribution of share of manufacturing in India’s GDP, which is currently at 18%, that is higher than the narrow range of 14 to 16% seen over last 4 decades.
The Scheme will be managed by Mr. Anish Tawakley and Mr. Mittul Kalawadia, and will have a minimum application amount of Rs. 5000 (an in multiple of Re. 1 thereafter). The Scheme is benchmarked to S&P BSE 500 Index.
Explaining the rationale behind the NFO, Mr. Nimesh Shah, MD and CEO, ICICI Prudential Asset Management Company said, “We believe India is poised to emerge as a significant manufacturing hub in order to cater to rising domestic demand. Positive policy announcements by the government and well-designed development programmes in various sectors of manufacturing, is likely to lead to further growth in coming years. This Scheme will broadly look at the manufacturing theme from three aspects namely Exports oriented manufacturing, domestic consumption and domestic capex manufacturing.”
Key growth drivers of manufacturing sector in India include: Domestic availability of raw materials at competitive prices, strong demand growth in consumer industry, competitive cost of manufacturing, increasing investment in research and development and an eco-system to support industry and innovation.
Investors can invest in growth and dividend options under the Scheme. Exit load is 1% of the applicable NAV, if units are purchased or switched in from another scheme of the fund and redeemed or switched out within 18 months from the date of allotment. Nil after 18 months from the date of allotment.