The scheme will follow a bottom up approach and can take exposure to companies involved in product/services/solution related innovation. The scheme can invest across market cap, basis suitable opportunities.
The scheme will be managed by Anish Tawakley and Vaibhav Dusad. Overseas investment will be managed by Sharmila D’Mello. The benchmark of the scheme is Nifty 500 TRI.
The scheme will invest a minimum of 80% in companies adopting innovation strategies and themes & Overseas Securities adopting innovation strategies and themes. The scheme will be both sector and marketcap agnostic. The scheme may invest upto 20% of its net assets in ADR / GDR / Foreign securities / Mutual Funds / ETFs.
Historically, it has been observed that innovative companies tend to outperform non innovating players as they fare better in terms of organic growth through innovation thereby providing better opportunities for wealth creation, the fund house said. This becomes significant especially given that innovation diffusion is happening at a rapid pace. For example: Telephone took 66 years to achieve a 50% penetration while smartphones took just seven years to achieve the same feat, it added.
Speaking on the launch of the product, Chintan Haria, Head – Investment Strategy, ICICI Prudential AMC, said, “As countries look to become increasingly self-sufficient in terms of resources, innovation as a theme is likely to do well going forward globally and domestically. With the deployment of 5G technology, a wide gamut of sectors/industries stand to benefit and India already has a robust ecosystem in place for nurturing innovation.” He further adds, through this offering an investor will have access to companies involved in product/service/solution related innovation both in India and overseas. Given that innovation can happen anywhere, our research team will track sector/theme specific trends.”
