ICICI Pru – known for its track record of well timed thematic fund launches – has now launched a Conglomerates Fund – which it believes is the right theme for these uncertain times.
Trade uncertainties coupled with weakening global macros don’t paint a pretty picture even as the domestic economy is being strengthened to counter-balance global dynamics. In such uncertain times, conglomerates – with their superior resilience, stand out as a segment that can navigate down as well as up cycles better than most.
Lalit will be very cycle focused in his sector selection – buying when sectors are in down cycles that appear to be turning the corner. This counter-cyclical approach is part of the DNA of this fund house.
Conglomerates – which are large groups with businesses across sectors – will exclude PSUs and MNCs.
The universe for this fund is 240 companies owned by 71 business houses with presence in 19 industries – thus giving a broad-based consideration set to create a portfolio.
The fund will have a minimum of 30 stocks to ensure adequate diversification and will be initially large cap tilted though the fund’s universe of stocks has a healthy mix of all cap sizes.