ICICI Prudential Mutual Fund has filed a draft documents with the Securities and Exchange Board of India (SEBI) for ICICI Prudential Commodities Fund. This new open-ended equity scheme, once approved, will invest mainly in companies related to the commodities sector. The scheme is deemed as potentially high risk.
The scheme will invest 80 to 100 percent of its assets in stocks engaged in commodity and commodity related activities. Some such sectors are metals, cement, paper, fertilizers and pesticides, energy, agriculture, textiles to name a few. Investments in companies not related to commodities will be capped at 20 percent. The scheme is permitted to invest in other instruments like debt, money market instruments, other derivatives, gold and gold ETFs till up to 20 percent. The scheme will not engage in short selling.
Nifty Commodities Index will be used as a benchmark for the ICICI Prudential Commodities Fund. The benchmark index consists of companies that represent the commodities sector and includes 30 constituents that are listed on the National Stock Exchange (NSE). Some of the top constituents in the index are Reliance Industries (10.13 percent), NTPC Limited (7.65 percent), ONGC (6.62 percent).
|Index Name||1-yr Returns (%)||5-yr Returns (%)|
|NIFTY Commodities Index||-18.38||8.29|
*Returns data as on 31st October, 2018
The fund will be managed by co-head of equities, Sankaran Naren and Priyanka Khandelwal. Khandelwal will manage the overseas investments in the scheme. Naren also manages schemes like ICICI Prudential Large & Mid Cap Fund, ICICI Prudential Multicap Fund (managing since October 2018). These have given five-year returns of 14.66 percent and 18.95 percent, respectively. Khandelwal manages one of the top performing schemes of the fund house – ICICI Prudential US Bluechip Equity Fund, that gives three-year returns of 13.45 percent. (As on Nov. 27, 2018)