The plan aims to maximize long-term capital gains by investing in equity and equity-related securities of banking, financial, and non-bank financial firms that are part of the banking and financial services industry. A large portion of the scheme’s assets will be invested in BSE Banks Index benchmarked stocks.
Features of the scheme
- Total assets– Minimum investment in equity-related instruments of a sector / particular theme – 80% of total assets.
- Risk Meter – Investors understand that their principal will be at high risk
- Fund Multiplier – It will take double (2x), quadruple (4x), and quintuple (5x) time to earn your money.
ICICI Prudential Banking and Financial Services Fund – Direct Plan-Growth-fund details
- Category: Equity: Sectoral-Banking and Financial Services
- Launch Date: 01-01-2013
- Asset Class: Equity
- Benchmark: Nifty Financial Services TRI
- Expense Ratio: 1.28% as on (31-01-2020)
- Status: Open-Ended Schemes
- Minimum Investment: 5000.0
- Minimum Top up: 1000.0
- Total Assets: 3,614.86 Cr As on (31-01-2020)
- Turn over: 44%
- Exit Load: 1% will be charged for redemption within 15 days
What does the risk represent?
Every investment comes with a risk. The risk is uncertainty or fluctuations in the investment price (and returns).
- High Risk = High Potential Return
- Low Risk = Stable, relatively low yields
How to apply ICICI Prudential Banking and Financial Services Fund – Direct Plan-Growth
Investors can apply for that scheme in two ways. The first of these is to apply online. To do this, they can visit ICICI Prudential’s website, where they have to register as new or existing investors. Once the application process is complete, they will be able to invest in the ICICI Prudential Banking and Financial Services Fund – Direct.
The second method is to apply offline for this scheme where investors can contact the branches of ICICI Prudential and help in filling the form and completing any other paperwork. They can also pay for investment through debit cards, check, and demand draft or through NEFT and RTGS transfer. Investment in this fund can be a lump sum or SIP.
Tax benefits of investment in ICICI Prudential Banking and Financial Services Fund – Direct Plan
- Long-term capital gains (LTCG) tax @ 10 percent (plus surcharge, if applicable, and cess) if the units are held for more than 12 months without indexing.
- If short-term capital gains (STCG) tax @ 15 percent (plus surcharge, if applicable and cess), if the units are held for less than 12 months.
- The investor does not pay any tax on the dividend, but a dividend distribution tax (DDT) is deducted at source @ 11.648 percent (10 percent + 12 percent surcharge + 4 percent health and education cessation).
- Capital gains earned as on 31 January 2018 are exempt from LTCG tax in respect of units earned before 31 January 2018 and are redeemed on or after 1 April 2018. DDT is payable by mutual funds.