Mutual Fund Investment: If you want to take advantage of new opportunities, then this fund is of your use – icici prudential mutual fund launches innovation fund nfo

Innovative companies grow more

History has shown that companies that innovate do better. Because they tend to do better in terms of organic growth through innovation. This gives better opportunities to make money on investment. This becomes especially important because innovation is spreading at a very rapid pace. For example, it took 66 years for the telephone to reach 50% of the population (penetration). The smartphone achieved the same feat in just seven years.

Journey from steam engine to Vande Bharat

If we look at the last decade, now innovation is happening a bit more. Earlier the steam engine used to run at a slow speed while chhuk-chhuk. After that came diesel engines, then electric engines. And now the semi high-speed Vande Bharat started running. All these innovations have happened in front of our eyes. The steam engine, the internal combustion engine, the telephone, the automobile, electricity, the computer, the internet, artificial intelligence, energy storage, robotics, and blockchain, all of which are milestones of innovation in the past 300 years alone.

This fund can be helpful

Chintan Haria, Head of Investment Strategy, ICICI Prudential AMC, said innovation as a theme is likely to take off globally and domestically as our countries seek to become increasingly self-sufficient in resources . However, given the potential of innovation, it is important to choose the right things to take advantage of it. According to Haria, with the introduction of 5G technology, many sectors and industries will benefit and India already has a strong ecosystem to promote innovation. He further adds that through this offering an investor will have access to companies involved in innovation in product or service or solutions, both in India and overseas. Given that innovation can happen anywhere, our research team will track sector or theme specific trends.

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Investment can also be done in international equity

According to the report, this fund will get exposure to companies involved in innovation related to products or services or solutions and its approach will be bottom-up. It is not affected by market-cap at all which opens up a lot of possibilities. The scheme may invest up to 20% of its net assets in international equities to tap opportunities such as cloud computing, entertainment, driverless cars etc.