Mumbai, May 18
PRUDENTIAL ICICI Mutual Fund is seeking to launch two new equity products called Prudential ICICI Service Industries Fund and Prudential ICICI Infrastructure Fund.
The service sector fund is an open-ended fund that would invest primarily in companies that are expected to benefit, directly or indirectly, by the expected growth in services sector. The fund would invest 70-100 per cent in equity and equity-related instruments and retains an option to invest up to 30 per cent in debt and money market instruments.
The offer document of the fund says that the sectors of investment of the fund would include auto components, garment accessories, construction, hospitality, and transportation. This fund follows the Tata Service Industries Fund, which was launched in February this year.
Prudential ICICI has also filed an offer document for launching the Prudential ICICI Infrastructure Fund, another open-ended equity fund.
The area of investment of this fund would be in companies involved in infrastructure development. The offer document says, "The infrastructure sector in the country is poised for accelerated growth in the coming years. There is already momentum in highways, power generation and ports, where a successful track record has fostered a virtuous cycle of more success."
Both these funds stipulate a minimum application amount of Rs 5,000. They are available in the growth and dividend options. The schemes charge an entry load of 2.25 per cent for all purchases less than Rs 5 crore. The offer documents of both these schemes are filed with the SEBI and are awaiting regulatory clearance.