ICICI Prudential ESG NFO

Updated on 01-10-2020

ICICI Prudential Mutual Fund has launched ICICI Prudential ESG Fund, an open-ended equity scheme which encourages sustainable investing, by investing in companies which follow Environmental, Social and Governance (ESG) theme.

The NFO has opened its subscription and will close on October 5 2020.
According to the fund house, ICICI Prudential ESG Fund addresses the growing need of responsible investing and allows investors to benefit from investing in companies

Besides investing 80%-100% in companies with strong ESG score, the fund can invest in securities of foreign companies with a high ESG score which are able to maintain suitable ESG scores.

ESG-focused companies show better growth which may translate into better wealth creation for investors and could demonstrate better resilience in downturns.

Here are all the details of the ESG Fund:

Name of the Fund	*ICICI Prudential ESG Fund*
Type of Scheme	An open-ended equity scheme which invests in stocks of companies based on the Environmental, Social and Governance (ESG) theme
Benchmark	Nifty 100 ESG TRI
NFO Dates	Opens on September 21, 2020, and closes on October 5, 2020
Fund Manager	Mrinal Singh, Priyanka Khandelwal
Minimum Application Amount/Minimum Purchase Amount (including switches)	Rs. 5,000 and in multiples of Re. 1 after that
Minimum Additional Investment (including switches)	Rs 1,000 and in multiples of Re 1 after that
Minimum Redemption Amount	Any amount
Entry Load	Nil
Exit Load	1%: If more units are redeemed/switched on or before 12 months from the date of allotment of Unit NIL: If Units are redeemed/switched after 12 months from the date of allotment of units: Nil
Plans	Regular Plan and Direct Plan
Options	Growth and Dividend Option (Payout, Dividend Reinvestment Option, Sweep)

What should you do?

ESG investing imposes additional criteria that companies have to satisfy before a section of investors (who wish to invest with a conscience) finds them appealing. But with more awareness, ESG investing is expected to become mainstream, where every equity fund would behave exactly like an ESG fund. In India, we are many years away from getting to that point. Till then, ESG-focussed schemes such as the ICICI Prudential ESG fund are the way to go.

You can invest in the ICICI Prudential ESG Fund NFO with investment horizon of at least 5 years or more. And, since this is a Thematic Equity Fund, it is more suitable for investors with appetite for high risk.

To know more

You can use GIIS Financial tools or Our Android App for Investment, tracking and Asset allocation planning.

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

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