ICICI Prudential Mutual Fund has announced modifications to the fundamental attributes of its Commodities Fund. The scheme will broaden its portfolio by including units of silver exchange-traded funds (ETFs) alongside its existing asset classes.
The adjustments are slated to take effect from May 6, 2024.
The ICICI Prudential Commodities Fund has traditionally been recognised for investing across various asset classes such as equity, debt, gold ETFs, and REITs, among others.
After the changes come into effect, the scheme will allocate 80-100% of its assets to equity and equity-related instruments pertaining to commodity-centric companies.
Additionally, it will maintain flexibility by allocating 0-20% in other equity and equity-related instruments, 0-20% in debt instruments and money market instruments, 0-10% in units issued by REITs and InvITs, and 0-20% in Gold ETFs/
Silver ETFs or other asset classes as permitted by Securities Exchange Board of India (Sebi).
Investors' action
In a notice to unit holders, the fund house said it is providing existing unit holders with an option to either redeem their investments or switch to any other scheme within
ICICI Prudential Mutual Fund.Investors seeking to make a decision regarding their investments in the ICICI Prudential Commodities Fund should evaluate their options in light of these changes.
The provided exit window, spanning April 5, 2024, to May 6, 2024, offers unit holders time to consider their choices without incurring any exit load.
Given the impact of these modifications on investment objectives and risk profiles, investors should consult with financial advisors or fund managers to assess the suitability of the ICICI Prudential Commodities Fund in their portfolios post-implementation of the proposed changes.
About the fund
As of February 29, 2024, ICICI Prudential Commodities Fund has assets under management (AUM) of ₹2,032 crore.
The Net Asset Value (NAV) stands at ₹36.8300 as of March 26, 2024, according to Value Research data.
Since its inception four years and five months ago, the fund has delivered a return of 34.14%.
As of the latest available data, some of the top holdings of ICICI Prudential Commodities Fund include:
| Company | Percentage of Portfolio |
|---|
| Jindal Steel & Power | 8.67% |
| Jindal Stainless | 8.66% |
| JSW Steel | 7.88% |
| Tata Steel | 7.47% |
| Ambuja Cements | 6.21% |
(Source: Value Research)
(Edited by : Amrita)
First Published: Mar 26, 2024 11:59 AM IST
