ICICI Prudential Mutual Fund launches Housing Opportunities Fund

ICICI Prudential Mutual Fund has launched ICICI Prudential Housing Opportunities Fund, an open-ended equity scheme investing in equity and equity-related instruments of entities expected to benefit from the growth in housing theme.

The scheme will invest in basic eligible industries that form a part of Nifty Housing Index.

Housing as a theme encapsulates various sectors like cement, consumer electronics, housing finance, banks, power, steel, LPG/CNG/PNG/LNG suppliers etc. The fund house believes that housing as a theme seems to be poised for a turnaround as the real estate oversupply of 2008-2012 appears to be digested. This may lead to less pressure on real estate prices thereby aiding housing as a theme to perform better. With the number of Indians living in urban areas expected to reach 525 million by 2025 and 600 million by 2036, Real Estate sector in India is expected to reach USD $1 trillion by 2030.

Speaking on the launch of the product, Chintan Haria, Head – Product Development and Strategy, ICICI Prudential AMC, said, “”Housing as a theme, we believe is at the cusp of a strong cycle. India’s favorable demographics, growing middle class population, increased urbanization, better affordability and lower home loan interest rates are creating a conducive environment for housing. The scheme is suitable for investors looking for opportunities to participate in potential growth of Housing themes in the country.”