ICICI Prudential Mutual Fund has launched an innovation fund which will invest in domestic and foreign companies involved in either product or solution related innovation. The scheme will invest across market capitalisation and sectors.
The new fund offer, which opened on April 10, will close on April 24.
In a press release, the fund house said the ICICI Prudential Innovation Fund will invest a minimum of 80 per cent in companies adopting innovation strategies and themes. The scheme may invest up to 20 per cent of its net assets in overseas securities.
Citing a study by McKinsey & Company, the fund house said that innovating companies tend to outperform non-innovating players as they fare better in terms of organic growth.
“As countries look to become increasingly self-sufficient in terms of resources, innovation as a theme is likely to do well going forward globally and domestically. With the deployment of 5G technology, a wide gamut of sectors/industries stand to benefit and India already has a robust ecosystem in place for nurturing innovation,” said Chintan Haria, Head - Investment Strategy, ICICI Prudential AMC.
