ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty 500 Index Fund

Highlights:

• NFO opens on December 10, 2024, and closes on December 17, 2024

• Offers investors access to India’s top 500 companies based on market capitalization

• Minimum Application Amount: ₹100 (plus in multiples of ₹1)

ICICI Prudential Mutual Fund announced the launch of ICICI Prudential Nifty 500 Index Fund, an open-ended index scheme replicating Nifty 500 Index. This scheme is designed to replicate the performance of the Nifty 500 Index. The new fund offer (NFO) allows investors to participate in the growth story of India’s top 500 companies, representing nearly 94% of the nation’s listed universe (Source: Nifty Indices. Nuvama Research Data as on 31^st October 2024).

The Nifty 500 Index offers diversification across sectors and market caps, providing dynamic exposure to large-cap, mid-cap, and small-cap segments. This comprehensive approach ensures that investors can capture growth opportunities while adapting to changing market conditions.

Abhijit Shah, Head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC, stated, “With the launch of the ICICI Prudential Nifty 500 Index Fund, we aim to provide investors with an opportunity to gain access to a well-diversified portfolio that mirrors the performance of the Indian equity market as a whole. This offering is designed to cater to those looking for a low-cost, passive investment strategy to participate in the long-term wealth creation potential of Indian equities.”

The index is rebalanced semi-annually, so it could entirely align with market trends and valuation principles.

Why should investors invest in Nifty 500?

• Broad Market Coverage: Access to the top 500 companies based on market capitalization

• Robust Diversification: Offers robust sector-level diversification encompassing over 50 Industries

• Dynamic Market Cap Exposure: Offers exposure to large, mid, and small-cap stocks, adapting to changing market trends

• Cost-Efficiency: As a passive investment strategy, the scheme aims to deliver returns with minimal costs and tracking errors

• Proxy to Indian Economy: Offers a broad coverage of 94% of India’s listed universe

Riding India's Economic Growth:

India's economy is growing quickly and steadily, offering opportunities for investment. With its nominal GDP expected to increase significantly in the coming years, India is set to become one of the major player in the global market. This growth creates a strong chance for investors to potentially benefit from the country’s expanding industries and markets, making it a good choice for building long-term wealth.

Source: Nuvama Research, RBI. Times of India, IMF World Economic Outlook 2023. F-Forecast

Disclaimer - The sector(s)/stock(s) mentioned do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s)

Dynamic Market Coverage

The Nifty 500 Index captures growth opportunities across large, mid, and small-cap segments. It adapts to changing market conditions, ensuring a balanced and flexible investment approach.

Source: Data as on November 11, 2024. Past performance may or may not be sustainable in the future. Data Source : Nifty Indices https://www.niftyindices.com/reports/historical-data. MFI Explorer.   MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.

Performance Snapshot

Looking at the calendar year returns, one can see that the index has demonstrated resilience by participating in large-cap rallies and mitigating volatility during mid and small-cap downturns.

Source: Data as on November 11, 2024. Past performance may or may not be sustainable in the future. Data Source : Nifty Indices https://www.niftyindices.com/reports/historical-data. MFI Explorer. Large Cap refers to Nifty 100 TRI and Mid-Small Cap refers to Nifty Midsmallcap 400 TRI.

MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.

The Index has grown steadily over the years and has outperformed large-cap funds. A comparison of the Nifty 500 TRI with the large-cap-focused Nifty 100 TRI over 10 years (2014 to 2024) shows that the broader Nifty 500 index delivered better performance.

Source: Data as on November 11, 2024. Past performance may or may not be sustainable in the future. Data Source : Nifty Indices https://www.niftyindices.com/reports/historical-data. MFI Explorer.
MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. Returns rebased to Rs. 1000 as of 1st October 2014

SIP performance shows that the Nifty 500 TRI has consistently done better than the large-cap index over time. For example, over 5 years (as of November 11, 2024), the Nifty 500 TRI delivered 22% returns, compared to 19% by the Nifty 100 TRI.

Data as on November 11, 2024. Past performance may or may not be sustainable in the future. Data Source : Nifty Indices https://www.niftyindices.com/reports/historical-data .MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. CAGR- Compounded Annual Growth Rate. *SIP investment of Rs.1000 at the beginning of the each month for last 15 years

For media queries, please contact:

Adil Bakhshi

Principal PR & Corporate Communication 

Email: PR@icicipruamc.com 

Phone: 91-22-66470274

Riskometer & Disclaimers:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: All figures and other data given in this document are dated as of August 31, 2024 unless stated otherwise. The same may or may not be relevant at a future date. The information shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management Company Limited (the AMC). Prospective investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund.

Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed in-house. Some of the material(s) used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Further, the information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision taken on this material.

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