ICICI Prudential Housing Opportunities Fund
Offer of Units of Rs. 10 each during the New Fund Offer period and continuous offer of
Units at NAV based prices. Face Value of units of the Scheme is Rs. 10/- per unit.
#It may be noted that risk-o-meter of the Scheme specified above is based on the
scheme characteristics. The same shall be updated in accordance with provisions of
SEBI circular dated October 5, 2020 on Product labelling in mutual fund schemes on
ongoing basis.
The AMC reserves the right to extend or pre close the New Fund Offer (NFO) period,
subject to the condition that the NFO Period including the extension, if any, shall not be
for more than 15 days or such period as allowed by SEBI. The AMC shall publish an
addendum to this effect on the website of the AMC and in one national and one regional
newspaper of region where the Head office of AMC is situated.
NFO Opening: March 28, 2022
NFO Closing: April 11, 2022
Scheme will re-open for continuous Sale and Repurchase within 5 business days from
the date of allotment.
Name of Mutual Fund : ICICI Prudential Mutual Fund
Name of Asset Management Company : ICICI Prudential Asset Management Company
Limited
Type of Scheme
An open ended equity scheme following housing theme.
Investment
Objective
To generate long-term capital appreciation by investing in equity
and equity related instruments of entities engaged in and/or
expected to benefit from the growth in housing theme. However,
there can be no assurance or guarantee that the investment
objective of the Scheme would be achieved.
Liquidity
Being an open ended scheme, the Scheme will commence sale
and redemption of Units on an on-going basis not later than 5
business days from the allotment date. The Scheme being offered
is open-ended scheme and will offer Units for Sale / Switch-in and
Redemption /Switch-out, on every Business Day at NAV based
prices subject to applicable loads. As per the SEBI (Mutual Funds)
Regulations, 1996, the Mutual Fund shall despatch redemption
proceeds within 10 Business Days from the date of redemption. A
penal interest of 15% p.a. or such other rate as may be prescribed
by SEBI from time to time, will be paid in case the payment of
redemption proceeds is not made within 10 Business Days from
the date of redemption. Please refer to section 'Redemption of
units' for details.
Benchmark
Nifty Housing Index
Transparency / NAV
Disclosure
The AMC will calculate and disclose the first NAV within 5
business days from the date of allotment. Subsequently, the NAV
will be calculated and disclosed at the close of every Business
Day. The AMC shall prominently disclose the NAV of all schemes
under a separate head on the AMC’s website and on the website
of AMFI. NAV will be determined on every Business Day except in
special circumstances. NAV of the Scheme shall be made
available at all Customer Service Centres of the AMC.
AMC shall update the NAV on the website of Association of
Mutual Funds in India - AMFI (www.amfiindia.com) and AMC
website (www.icicipruamc.com) by 11.00 p.m. on every business
day. In case of any delay, the reasons for such delay would be
explained to AMFI and SEBI by the next day. If the NAVs are not
available before commencement of business hours on the
following day due to any reason, the Fund shall issue a press
release providing reasons and explaining when the Fund would be
able to publish the NAVs.
The Scheme Risk-o-meter shall be evaluated on a monthly basis
and Mutual Funds/AMCs shall disclose the Risk-o-meter along with
portfolio disclosure for all their schemes on their respective
website and on AMFI website within 10 days from the close of
each month. Any change in risk-o-meter shall be communicated
by way of Notice cum Addendum and by way of an e-mail or SMS
to unitholders of that particular scheme.
The AMC shall disclose portfolio of the scheme (along with ISIN)
as on the last day of the month / half-year on AMC’s website i.e.
www.icicipruamc.com and on the website of AMFI within 10 days from the close of each month / half-year respectively.
The AMC shall publish an advertisement in all India edition of at
least two daily newspapers, one each in English and Hindi, every
half year disclosing the hosting of the half-yearly statement of the
scheme’s portfolio on the AMC’s website and on the website of
AMFI.
The AMC shall send via email both the monthly and half-yearly
statement of scheme portfolio within 10 days from the close of
each month / half-year respectively. The unitholders whose e-mail
addresses are not registered with the Fund are requested to
update / provide their email address to the Fund for updating the
database.
The AMC shall provide a physical copy of the statement of scheme
portfolio, without charging any cost, on specific request received
from a unit holder.
Loads
ENTRY LOAD:
Not Applicable.
In terms of SEBI circular no. SEBI/IMD/CIR No. 4/168230/09 dated
June 30, 2009 has notified that w.e.f. August 01, 2009 there will be
no entry load charged to the schemes of the Mutual Fund.
EXIT LOAD:
1% of the applicable NAV - If the amount sought to be
redeemed or switched out is invested for a period of up to 1
month from the date of allotment.
NIL - If the amount sought to be redeemed or switched out is
invested for a period of more than 1 month from the date of
allotment.
The Trustees shall have a right to prescribe or modify the exit load
structure with prospective effect subject to a maximum prescribed
under the Regulations.
Minimum
Application Amount
DURING NEW FUND OFFER PERIOD/ DURING ONGOING OFFER
PERIOD:
Rs. 5,000/- (plus in multiple of Re. 1)
Minimum Switch –
In Amount
DURING NEW FUND OFFER PERIOD/ DURING ONGOING OFFER
PERIOD:
Rs. 5,000/- and any amount thereafter
Minimum
Additional
Application Amount
Rs. 1,000/- (plus in multiple of Re.1)
Minimum
Additional Switch In
Amount
Rs. 1,000/- and any amount thereafter
SIP Amount
Daily, Weekly, Fortnightly, Monthly SIP$
: Rs. 100/- (plus in
multiple of Re. 1/-) Minimum installments:
6
Quarterly SIP$
: Rs. 5,000/- (plus in multiple of Re. 1/-)
Minimum installments – 4
STANDARD RISK FACTORS
Investment in Mutual Fund units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.
As the price / value / interest rates of the securities in which the Scheme invests
fluctuate, the value of your investment in the Scheme may go up or down.
The NAVs of the Scheme may be affected by changes in the general market
conditions, factors and forces affecting capital market, in particular, level of interest
rates, various markets related factors and trading volumes, settlement periods and
transfer procedures.
Past performance of the Sponsors, AMC/Fund and their associates does not
guarantee the future performance of the Scheme.
ICICI Prudential Housing Opportunities Fund is the name of the Scheme and does not
in any manner indicate either the quality of the Scheme or its future prospects and
returns.
The Sponsors are not responsible or liable for any loss resulting from the operation
of the Scheme beyond the contribution of an amount of Rs. 22.2 lacs collectively
made by them towards setting up the Fund and such other accretions and additions
to the corpus set up by the Sponsors.
The Scheme is not a guaranteed or assured return Scheme.
All Mutual Funds and securities investments are subject to market risks and there can
be no assurance or guarantee that the objectives of the Scheme will be achieved.
The NAV of the Scheme can go up or down depending on the factors and forces
affecting the securities markets.
Mutual Funds being vehicles of securities investments are subject to market and
other risks and there can be no guarantee against loss resulting from investing in
Scheme.
As the liquidity of the Scheme’s investments could at times, be restricted by trading
volumes and settlement periods, the time taken by the Scheme for redemption of
units may be significant or may also result in delays in redemption of the units, in the
event of an inordinately large number of redemption requests or of a restructuring of
the Scheme’s portfolio. In view of this the Trustee has the right, at their sole
discretion to limit redemptions (including suspending redemption) under certain
circumstances.
Different types of securities in which the Scheme would invest as given in the
Scheme information document carry different levels and types of risk. Accordingly
the Scheme’s risk may increase or decrease depending upon its investment pattern.
E.g. corporate bonds carry a higher amount of risk than Government securities.
The Scheme may invest in ADRs/GDRs, equity of overseas companies listed on
recognized stock exchanges overseas and other securities in accordance with the
provisions of SEBI Circular No. SEBI/IMD/CIR No. 7/104753/07 dated September 26,
2007 and SEBI/IMD/CIR No. 122577/08 dated April 8, 2008 and
SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 5, 2020, and SEBI circular no.
SEBI/HO/IMD/IMD-II/DOF3/P/CIR/2021/571 dated June 03, 2021 subject to a
maximum of US$ 1 billion per mutual fund. Aggregate ceiling for investment by
Mutual Funds in overseas Exchange Traded Fund (ETF(s)) that invest in securities is
US $ 300 million per Mutual Fund. However, in case the overall industry limit of US$
7 billion or such other limit as prescribed by SEBI has been breached, the Scheme
would temporarily not invest in the overseas securities. Further, for investment in
overseas ETFs overall industry limit of US$ 1 billion shall be considered.
Scheme Information Document
ICICI Prudential Housing Opportunities Fund
11
Investors may note that AMC/Fund Manager’s investment decisions may not be
always profitable as the actual market movement may be at variance with the
anticipated trend. The Scheme proposes to invest substantially in equity and equity
related securities. The Scheme will, to a lesser extent, also invest in debt and money
market instruments. The inability of the Scheme to make intended securities
purchases due to settlement problems could cause the Scheme to miss certain
investment opportunities. By the same rationale, the inability to sell securities held in
the Scheme’s portfolio due to the absence of a well developed and liquid secondary
market for debt securities would result, at times, in potential losses to the Scheme, in
case of a subsequent decline in the value of securities held in the Scheme’s portfolio.
Liquidity risk - In case of abnormal circumstances it will be difficult to complete the
square off transaction due to liquidity being poor in stock futures/spot market.
However, the Scheme will aim at taking exposure only into relatively liquid stocks
where there will be minimal risk to square off the transaction.
The AMC may, considering the overall level of risk of the portfolio, invest in lower
rated/unrated securities offering higher yields. This may increase the risk of the
portfolio.
SCHEME SPECIFIC RISK FACTORS
1. Risk factors associated with investing in housing business:
The Scheme invests predominantly in equity / equity related instruments of entities
engaged in and/or expected to benefit from growth in housing activities. The Scheme is
thematic in nature, hence will be affected by the risks associated with the housing
sectors. Owing to high concentration risk for thematic scheme, risk of capital loss is high.
There is an element of unpredictable market cycles that could run for extended periods.
Loss of value due to obsolescence, or regulatory changes coupled with structural rigidity
of the Scheme can lead to permanent loss of capital. Thus, investing in a thematic fund
could involve potentially higher volatility and risk.
Investors may note that AMC/Fund Manager’s investment decisions may not be always
profitable. Although it is intended to generate capital appreciation and maximize the
returns by actively investing in equity/ equity related securities and utilising debt and
money market instruments as a defensive investment strategy.
At times, churning of portfolios may lead to substantial losses due to subsequent
adverse developments in the capital markets or unfavourable market movements. In
view of the same, there can be no assurance that the investment objective of the
Scheme will be realised.
In addition, the scheme is also subject to following specific risks:-
1. Changes in the policies of the Government of India or in the government of the states
where the investee companies operate may have potential to adversely impact the
operations of such companies in housing business. This may be aggravated considering
that the sector being a state subject, there may be a lack of uniformity in guidelines
across states. Some of the recent guidelines such as incorporation of Real Estate
Regulatory Authority (RERA) across states are expected to help in improvement of
governance in the sector.
2. The unavailability of raw material, fuel and labour, or an increase in their costs, may
adversely affect results of operations of investee companies in housing business.
Scheme Information Document
ICICI Prudential Housing Opportunities Fund
12
3. Companies in real estate sector require regulatory approvals in the ordinary course of
business failing which operations may get adversely impacted. Further, such companies
have to be in compliance with environmental, health and safety laws and regulations.
4. The operations of the companies could be substantially affected by economic, political
and other prevailing conditions in an economy. Prolonged slowdown in economic
growth may have an adverse impact on the operations of the investee companies.
2. Investing in Equities
Investors may note that AMC/Fund Manager’s investment decisions may not be
always profitable, as actual market movements may be at variance with anticipated
trends. Trading volumes, settlement periods and transfer procedures may restrict the
liquidity of these investments. Different segments of the financial markets have
different settlement periods and such periods may be extended significantly by
unforeseen circumstances. The inability of the Schemes to make intended securities
purchases due to settlement problems could cause the Schemes to miss certain
investment opportunities.
The value of the Schemes’ investments, may be affected generally by factors affecting
securities markets, such as price and volume volatility in the capital markets, interest
rates, currency exchange rates, changes in policies of the Government, taxation laws
or any other appropriate authority policies and other political and economic
developments which may have an adverse bearing on individual securities, a specific
sector or all sectors including equity and debt markets. Consequently, the NAV of the
Units of the Schemes may fluctuate and can go up or down.
The Mutual Fund may not be able to sell / lend out securities, which can lead to
temporary illiquidity. There are risks inherent in securities lending, including the risk
of failure of the other party, in this case the approved intermediary to comply with the
terms of the agreement. Such failure can result in a possible loss of rights to the
collateral, the inability of the approved intermediary to return the securities deposited
by the lender and the possible loss of corporate benefits accruing thereon.
Investors may note that dividend is due only when declared and there is no assurance
that a company (even though it may have a track record of payment of dividend in the
past) may continue paying dividend in future. As such, the schemes are vulnerable to
instances where investments in securities may not earn dividend or where lesser
dividend is declared by a company in subsequent years in which investments are
made by schemes. As the profitability of companies are likely to vary and have a
material bearing on their ability to declare and pay dividend, the performance of the
schemes may be adversely affected due to such factors.
While securities that are listed on the stock exchange carry lower liquidity risk, the
ability to sell these investments is limited by the overall trading volume on the stock
exchanges. The liquidity of the Schemes’ investments is inherently restricted by
trading volumes in the securities in which it invests.
Fund manager endeavors to generate returns based on certain past statistical trend.
The performance of the schemes may get affected if there is a change in the said
trend. There can be no assurance that such historical trends will continue.
In case of abnormal circumstances it will be difficult to complete the square off
transaction due to liquidity being poor in stock futures/spot market. However, fund
will aim at taking exposure only into relatively liquid stocks where there will be
minimal risk to square off the transaction. The Schemes investing in foreign securities
will be exposed to settlement risk, as different countries have different settlement
periods.
The schemes are also vulnerable to movements in the prices of securities invested by
the schemes which again could have a material bearing on the overall returns from
the schemes.
Securities, which are not quoted on the stock exchanges, are inherently illiquid in
nature and carry a larger amount of liquidity risk, in comparison to securities that are
listed on the exchanges or offer other exit options to the investor, including a put
option.
Changes in Government policy in general and changes in tax benefits applicable to
mutual funds may impact the returns to investors in the Schemes or business
prospects of the Company in any particular sector.
3. Investing in Fixed Income Securities
Market Risk/Interest Rate Risk: The Net Asset Value (NAV) of the Scheme(s), to the
extent invested in Debt and Money Market securities, will be affected by changes in
the general level of interest rates. The NAV of the Scheme(s) is expected to increase
from a fall in interest rates while it would be adversely affected by an increase in the
level of interest rates.
Liquidity Risk: The liquidity of a security may change depending on market
conditions leading to changes in the liquidity premium linked to the price of the
security. At the time of selling the security, the security can become illiquid leading to
loss in the value of the portfolio.
Credit Risk: Investments in Fixed Income Securities are subject to the risk of an
issuer's inability to meet interest and principal payments on its obligations and
market perception of the creditworthiness of the issuer.
Price Risk: Government securities where a fixed return is offered run price-risk like
any other fixed income security. Generally, when interest rates rise, prices of fixed
income securities fall and when interest rates drop, the prices increase. The extent of
fall or rise in the prices is a function of the existing coupon, days to maturity and the
increase or decrease in the level of interest rates. The new level of interest rate is
determined by the rates at which government raises new money and/or the price
levels at which the market is already dealing in existing securities. The price-risk is
not unique to Government Securities. It exists for all fixed income securities.
However, Government Securities are unique in the sense that their credit risk
generally remains zero. Therefore, their prices are influenced only by movement in
interest rates in the financial system.
Settlement risk: The inability of the Scheme to make intended securities purchases
due to settlement problems could cause the Scheme to miss certain investment
opportunities. By the same rationale, the inability to sell securities held in the
Schemes’ portfolio due to the extraneous factors that may impact liquidity would
result, at times, in potential losses to the Plan, in case of a subsequent decline in the
value of securities held in the Schemes’ portfolio
