The changes will be effective from May 6, 2024. The fund house informed the unit holders through a notice-cum-addendum.
After the proposed changes, the scheme will allocate 80-100% in equity and equity-related instruments of companies engaged in commodity and commodity-related sectors, 0-20% in other equity and equity-related instruments, 0-20% in debt, units of debt mutual fund schemes and money market instruments, 0-10% in units issued by REITs and InvITs, and 0-20% in Gold ETFs/Silver ETFs/ other asset classes as may be permitted by Sebi from time to time (subject to applicable Sebi limits).
The primary investment objective of the scheme is to generate long-term capital appreciation by creating a portfolio that is invested predominantly in equity and equity-related securities of companies engaged in commodity and commodity-related sectors. The scheme will invest in companies classified under ‘Commodities’ as per industry classification issued by AMFI from time to time.
The fund house further mentioned that the existing unit holders (i.e. whose names appear in the register of unitholders as of the close of business hours on March 22, 2024) under the scheme are hereby given an option to exit, i.e. either redeem their investments or switch their investments to any other scheme of ICICI Prudential Mutual Fund.
The investors can redeem within 32 days (at least 30 days) exit period starting from April 5, 2024, till May 6, 2024 (both days inclusive and up to 3.00 pm on May 6, 2024 ) at Applicable NAV, without payment of any exit load.Unitholders who do not exercise the exit option by 3.00 PM on May 6, 2024, would be deemed to have consented to the proposed modification.
Unitholders who have pledged or encumbered their units will not have the option to exit unless they procure a release of their pledges/encumbrances before the submission of redemption/switch requests.
Redemption/switch of units from the scheme, during the exit period, may entail capital gain/loss in the hands of the unitholder. Equity scheme(s) will also attract Securities Transaction Tax (STT) at applicable rates. Similarly, in the case of NRI investors, TDS shall be deducted under the applicable Tax laws, upon exercise of exit option and the same would be required to be borne by such investor only.
The amount of redemption will be credited to the unit holder’s bank account (as registered in the records of the registrar) within 3 working days from the date of receipt of the redemption request subject to exceptional situations and additional timelines for redemption payments provided by AMFI vide its letter no. AMFI/ 35P/ MEM-COR/ 74 / 2022-23 dated January 16, 2023.
In the event of failure to dispatch the redemption or repurchase proceeds within regulatory timelines, the fund house is liable to pay interest to the unit holders at 15% p.a. SEBI has further advised the mutual funds that in the event of payment of interest to the unit holders, such unit holders should be informed about the rate and the amount of interest paid to them.
All other features and terms and conditions of the scheme shall remain unchanged. This notice-cum-addendum forms an integral part of the SID/KIM issued for the scheme, read with the addendums issued from time to time.
The fund manages assets of Rs 2,031 crore. As of February 29, 2024, the scheme invests 96.06% in equity, 0.24% in debt, and 3.68% in others (including cash and cash equivalents, net current assets, and Tri-party repo.
