ICICI Prudential Mutual Fund Launches Housing Opportunity Fund

ICICI Prudential Mutual Fund has launched ICICI Prudential Housing Opportunities Fund, an open-end equity program that invests in equity and equity-related instruments of entities that stand to benefit from growth in the housing theme.

The new fund offering will open on March 28 and close for subscription on April 11. The program will invest in core eligible industries that are part of the Nifty Housing Index.

S Naren and Anand Sharma will be the program fund managers. The program reference is Nifty Housing TRI. The minimum request amount at the time of the NFO is Rs 5,000 (more in multiples of Re.1).

Housing as a theme encompasses various sectors such as cement, consumer electronics, housing finance, banks, electricity, steel, LPG/CNG/PNG/LNG suppliers, etc. The excess real estate supply of 2008-2012 seems digested. This can lead to less pressure on property prices, helping housing as a theme to perform better. With the number of Indians living in urban areas expected to reach 525 million by 2025 and 600 million by 2036, the real estate sector in India is expected to reach $1 trillion by 2030.

Speaking at the product launch, Chintan Haria, Head of Product Development and Strategy, ICICI Prudential AMC, said, “We believe the housing theme is on the cusp of a strong cycle. India’s favorable demographics, growing middle-class population, “increased urbanization, better accessibility and lower interest rates on mortgages create a conducive environment for housing. The program is suitable for investors looking for opportunities to participate in the potential growth of housing themes in the country.”

Dolores W. Simon