ICICI Pru AMC launches Value Fund Series 3

A closed ended equity fund

February 26, 2014 8:47 IST | India Infoline News Service
ICICI Prudential Asset Management Company announced the launch of ICICI Prudential Value Fund Series 3, a closed ended equity fund that focuses on investing in stocks that trade at a discount to their true value. The fund will be a third in a series of 3 from the theme of ‘value investing’. The stocks picked for the funds will be identified through the process of fundamental analysis.
The fund aims at adopting the ‘value investing’ approach where low priced stocks with justifiable higher fundamentals are identified and invested in with the aim of long – term capital appreciation. ICICI Prudential AMC as an investment house believes that the market is favourable towards value picks in the long – term.
Speaking on the launch of this fund and the thought behind it, Mr. Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company said, “We are in an interesting period for investment in Indian equities. We have observed in the long term that whenever GDP growth has been low, investment in equities (eg. Investing in the 2001-02 and 2002-03 period) delivered good returns. For a period marked by the highest GDP growth such as years of 2007-2008 and 2009-2010, it was the best period to sell equities. Basis this strong correlation, now is a good long-term period to look at value opportunities.”
“While the economy will get impacted from global measures and domestic challenges, the most compelling story of the continuation of the reforms process with a strong belief in FDI, will crystallize post the 2014 union elections. The change is likely to nurture foreign investment and will uplift the market. Hence, using the value strategy in the current scenario makes compelling sense”, he added.
Currently, the market sentiment remains negative as the overall valuations of stocks approach a dichotomy. While the top – 20 stocks remain expensive, the market reveals attractive valuations in specific pockets. ICICI Prudential AMC has identified such old – economy stocks to derive the best value as the market remains discounted.

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