ICICI Prudential Long Term Wealth Enhancement Fund is a three-year closed-ended ELSS (Equity Linked Savings Scheme) Fund. It is eligible for a deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The fund will invest at least 80% of its corpus in equities across market capitalisation.
The fund will be managed by Sankaran Naren, the long-standing Chief Investment Officer (CIO) of ICICI Prudential Mutual Fund and Rajat Chandak who has a decade’s worth of experience with ICICI Mutual Fund as a fund manager and investment analyst.
The Fund will allocate money between large, mid and small caps considering liquidity, trading volumes and market scenario (bear markets tend to cause less damage to large caps).
Sectoral Allocation (Top-Down Approach)
The Fund will set its sectoral exposure considering the macroeconomic scenario, policy changes, global trends, relative valuation vis-a-vis other sectors and risk premium of the sector.
Stock Selection (Bottom-up Approach)
The Fund will follow a bottom-up approach to stock selection considering relative valuation, management quality, business fundamentals and risk and ratios such as price to earnings and price to book.
Both open and closed-ended ELSS funds have a three-year lock-in and hence this fund adds a ‘second layer’ of lock-in through its closed-ended nature. This will further reduce the impact of potentially volatile inflows and outflows on the fund manager. From the investor’s point of view, the lock-in remains the same and hence liquidity is not compromised.
However, the fund has no distinctive investment theme. Being a closed-ended fund, it also has no track record to evaluate it.
NFO Period: December 22nd, 2017 to March 21st, 2018
Tenure: 3 years
Type: ELSS/Tax Saving
Tenure: 3 years
Options: Growth and Dividend Payout
Fund Managers: Sankaran Naren and Rajat Chandak
Minimum Investment: Rs 500
See our other NFO coverage
Note: Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Talk to your financial advisor before investing.