everyone Eagerly waiting for the new year. Everyone is planning for the new year in their own way. If you are also planning a new investment to fulfill your dreams in 2025, then you are going to get many new investment options. Many mutual fund houses are coming up with new MF schemes. In this series, ICICI Prudential Mutual Fund has announced the launch of Rural Opportunities Fund, which is an open-ended equity scheme based on rural and allied themes. The scheme will invest primarily in sectors that contribute to and benefit from the growth and development of rural India. It aims at long-term wealth creation by investing in equity and equity-related instruments of companies primarily involved in rural and allied sectors. The NFO of this fund will open on January 9 and close on January 25. However, before investing in any fund, consult your investment advisor. We are telling this fund only for information. Not giving investment advice.
Immense opportunities for development in rural India
Sankaran Naren, ED and CIO of ICICI Prudential AMC and fund manager of NFO, said rural India is the next theme that can have a transformative impact in the next decade. Driven by structural and cyclical economic factors and increasing focus on rural development through various initiatives by many state governments, this will likely be the segment that will contribute to economic growth. Therefore, our new scheme aims to take advantage of these developments, giving investors the opportunity to participate in India’s rural growth story.
Rural India is writing a new story
India’s growth story is inextricably linked to its rural development. As the country aspires to become a global manufacturing hub, rural India plays a vital role in this transformation. The government has made significant progress in improving basic needs and quality of life in rural areas, paving the way for comprehensive developmental efforts. With rural demand rising again after a decade of stagnation and positive structural changes, the rural theme is promising. Its broad scope spans multiple sectors and market-caps, providing flexibility and growth potential across the economy.
Benchmark – Nifty Rural Index
The Nifty Rural Index aims to track the performance of stocks from the Nifty 500 index, which represent the rural theme. The largest 75 stocks in eligible basic industries are selected based on 6-month average free-float market capitalisation. A significant portion of India’s GDP comes from rural areas and with the government’s focus on improving rural infrastructure and the economy, this theme has the potential to provide growth opportunities.
Why rural theme?
There is flexibility to change the allocation to sectors within the rural theme depending on market conditions to capitalize on market opportunities. These include schemes like Pradhan Mantri Awas Yojana – Rural, Jal Jeevan Mission, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, Pradhan Mantri Krishi Sinchai Yojana and Pradhan Mantri Suraksha Bima Yojana along with MNREGA.
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