ICICI Prudential Asset Management Company announced the launch of its first equity fund directly investing in US Bluechip companies — ‘ICICI Prudential US Bluechip Equity Fund’.

It is a diversified equity fund investing in bluechip companies listed on the New York Stock Exchange and NASDAQ stock exchanges. The fund will open for subscription on June 18, 2 and close on July 2.

The fund will give opportunities to Indian investors to invest directly in companies in the US. The fund is benchmarked to the S&P 500 index. The portfolio of the fund will consist of about 20-25 stocks wherein no sector will get more than 25 per cent exposure.

“Dividend yields of US equities are apparently, after the 1970s for the first time, the same as the treasury yields. Normally, treasury yields are much, much higher than dividend yields.

“It has corrected so much that today treasury yields and dividend yields are pretty much the same which makes it extremely attractive to equities relative to debt. And we are using that opportunity at this point of time,” said Mr Sankaran Naren, Chief Investment Officer — Equity, ICICI Prudential AMC.

Investors can invest in lump sum or through SIPs. The minimum application amount is Rs 5,000.

sneha.p@thehindu.co.in

(This article was published on June 19, 2012)
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