It is an open-ended equity scheme that seeks to generate long-term capital appreciation for unitholders from portfolios primarily invested in equity and equity-related securities of companies involved in banking and financial services. However, there can be no certainty that the investment target of the scheme will be achieved.

ICICI Prudential Banking and Financial Services Fund details

  • Category: Mutual Fund-Equity-Sectoral
  • Fund Type: Open Ended
  • Fund Manager: Roshan Chutkey
  • Minimum Amount for Lumpsum Investment: (Rs.) 5000
  • Minimum Amount for SIP Investment: (Rs.) 1000
  • Nav Date: 28/02/2020
  • Nav: 69.73
  • AUM (Cr.): 3614.86
  • AUM Date: 31/01/2020
  • Expense Ratio Currently: 2
  • Expense Ratio Date Currently: 25/02/2020

Exit load of ICICI Prudential Banking and Financial Services Fund: If units purchased or swapped by investors from another fund scheme are redeemed or switched within 15 days of the date of allotment, 1.00% will be charged.

No fees will be applied to units purchased or swapped from other fund schemes within 15 days of the allocation date.

ICICI Prudential Banking and Financial Services Fundaims

The ICICI Prudential Banking aims to optimize long-term capital gains of banking, financial and non-bank financial firms by investing in equities and equity-linked stocks that are part of the banking and financial services industry. A large portion of the plan’s assets will be invested in the stocks that make up the BSE Banks Index benchmark.

Characteristics of ICICI Prudential Banking and Financial Services Fund Scheme

The minimum investment in equity & equity related instruments of a sector/ particular theme – 80% of total assets.

What is the tax treatment of income?

  • Fifteen percent tax on short-term capital gains, a 10 percent tax on long-term capital gains over 1 lakh incremental gains in the relevant financial year.
  • The investor does not pay dividend tax, but a dividend distribution tax (DDT) is deducted at source @ 11.648 percent (10 percent + 12 percent surcharge + 4 percent health and education cessation).
  • Capital gains made up to 31 January 2018 remain out of LTCG tax in respect of units purchased before 31 January 2018 and are redeemed on or after 1 April 2018. DDT is paid by a mutual fund.

What is the Risk Factor in ICICI Prudential Banking and Financial Services fund?

  • All mutual fund investments are subject to market risks, and the NAV of the schemes may go up or down depending on the factors and forces affecting the stock market, and there can be no guarantee that the objectives of the fund are achieved.
  • The fund’s past performance does not reflect the future performance of the fund’s schemes.
  • Invest in this fund only if you are genuinely optimistic about the growth prospects of financial services companies. Sector funds appear to be cyclical.
  • ICICI Prudential Banking and Financial Services fund scheme is ideal for medium to long term purposes such as retirement, education for children, etc. Invest in that fund to create long-term wealth.

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