NFO: ICICI Pru Housing Opportunities Fund

By Morningstar |  24-03-22 | 

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Housing Opportunities Fund, an open-ended equity scheme with an objective to provide 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.

The new fund offers opens for subscription on March 28, 2022, and closes on April 11, 2022.

"Housing as a theme encapsulates various sectors like cement, consumer electronics, housing finance, banks, power, steel, LPG/CNG/PNG/LNG supplier etc. 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.

The early signs of this are visible in the healthy growth of housing sales volume (across seven major cities) which surged 113% YoY, signifying healthy recovery post lockdown. Furthermore, residential sector is expected to receive a boost under the Pradhan Mantri Awas Yojana (PMAY) scheme. Also, the segment is attractively valued post going through a time correction since 2013. (Data Source: All India Debt & Investment Surveys)," states the release.

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 and allied themes.

Moreover, the Government. has been trying to stimulate activity in the sector through various supportive measures like affordable housing, affordable rental housing complex (ARCH) scheme, increase in capex, stamp duty cuts, 100% FDI for townships and settlements development projects to name a few. India being one of the fastest-growing economies should see strong demand for housing as was seen historically in other developed economies.”

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Pavan Sachdev
Apr 8 2022 11:22 AM
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