ICICI Prudential Mutual Fund has launched a new open-ended equity fund called the ICICI Prudential Quality Fund, specially designed for investors who want to focus on high-quality companies. The fund is available for investment now, and the last date to invest is 20 May 2025.
This fund follows a quality factor theme, which means it will mainly invest in financially strong companies with low debt and consistent performance.
Managed by experienced fund managers
Two experienced professionals will manage this scheme – Ihab Dalwai and Masumi Jhurmarvala. The fund’s benchmark will be the Nifty 200 Quality 30 TRI, so the portfolio will only include companies from this index.
The Nifty 200 Quality 30 index includes those companies from the top 200 stocks in India that score high on return on equity, have low debt levels, and have stable earnings.
Exit load and plan options
The fund has an exit load of 1% if an investor withdraws money within 12 months of investment. After 12 months, there will be no exit charges.
This scheme will be available in both Regular and Direct plans, and investors can choose between the Growth option and IDCW option (Income Distribution cum Capital Withdrawal). The IDCW option allows investors to receive money from time to time as a part of their investment returns.
Where will the fund invest?
The Quality Fund will invest in companies that show:
- High Return on Equity (ROE) – shows how well a company uses investor money to generate profit
- Strong cash flow – healthy inflow and outflow of money in the business
- Low debt – financially stable with less borrowing
- Consistent performance – companies that perform well in different market situations
The fund aims to build a portfolio of stocks that can survive market ups and downs by picking companies with strong financials.
Focus on stable companies during tough times.
According to S. Naren, Executive Director and CIO at ICICI Prudential AMC, this fund is launched when the economy is uncertain. He says, “The economic conditions are weak, and growth is slowing. In such times, strong companies with stable earnings are the better option. Our aim is to buy such quality companies at fair prices and create a portfolio that works well in all market conditions.”
Why quality stocks make sense now
Global economic pressure is due to geopolitical tensions, rising interest rates, and weak domestic earnings. In such times, experts believe that quality stocks usually perform better. These companies are less affected by market stress because their balance sheets are strong, and they continue to grow even during difficult periods.
This new Quality Fund by ICICI Prudential could be a good option for investors looking for long-term investments in stable companies.
Source: Navbharat Times
