ICICI Prudential Mutual Fund to bet on transportation and logistics theme

Henil Shah
/ Categories: Trending, Mindshare
ICICI Prudential Mutual Fund to bet on transportation and logistics theme

ICICI Prudential Mutual Fund bets on the transportation and logistics sector by launching ICICI Prudential Transportation and Logistics Fund. Read on to know more.

To bet on the transportation and logistics theme, ICICI Prudential Mutual Fund launches ICICI Prudential Transportation and Logistics Fund. This scheme from ICICI Prudential MF would predominantly invest in the equity and related securities of companies in the transportation and logistics scheme.

 

The scheme would likely invest in the stocks that primarily form a part of the NIFTY Transportation and Logistics index. This would also serve as the primary benchmark of this fund.

 

The New Fund Offer (NFO) opens on October 6, 2022, and closes on October 20, 2022. Further, the scheme will re-open for continuous sale and repurchase within five business days from the date of allotment.

 

The transportation and logistics theme mainly forms stocks from two major sectors – automobile and ancillaries and logistics. This scheme would be managed by Harish Bihani and Sharmilla D’Mello (for Overseas Investments). 

 

The below table would give you a rough idea of what its top holdings may look like. Though this might differ depending upon the investment philosophy of the scheme.

 

Top 10 Holdings of NIFTY Transportation & Logistics Fund

Company’s Name

Weight (%) *

Mahindra & Mahindra Ltd.

14.41

Maruti Suzuki India Ltd.

13.92

Tata Motors Ltd.

8.61

Adani Ports and Special Economic Zone Ltd.

6.99

Eicher Motors Ltd.

6.08

Bajaj Auto Ltd.

5.37

Hero MotoCorp Ltd.

3.93

Tube Investments of India Ltd.

3.39

TVS Motor Company Ltd.

2.85

Ashok Leyland Ltd.

2.61

* As on September 2022

 

Chintan Haria, Head - Product Development and Strategy, ICICI Prudential Asset Management Company, said, “Transportation is an under-penetrated market in India. The new policy on logistics by the government underlines the key role played by the sector in the economic growth of the country. Formalization of the economy and positive correlation to GDP growth and the Government's initiatives to reduce costs and improve efficiency, all stand to benefit the sector in the coming years. With muted performance in the last couple of years, we believe the theme is coming out of the woods and there are more legs to recovery.”

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