NFO Alert: ICICI Prudential Mutual Fund Launches Nifty 250 Smallcap Index Focused ETF

The small-cap space has seen strong investor interest in recent months as evidenced by data released by the Association of Mutual Funds in India (Amfi) for the month of May 2026. Net inflows into small-cap equity funds in May 2026 stood at Rs 4,945.57 crore, according to the Amfi data.

Amid the rising interest in the small-cap category, ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty Smallcap 250 Exchange Traded Fund (ETF). The ETF aims to provide investors exposure to shares of companies within the small-cap universe. 

ICICI Prudential Nifty Smallcap 250 ETF: Key Dates

The new fund offer (NFO) opened on June 9 and the subscription window will remain open till June 16, 2026. 

What Does ICICI Prudential Nifty Smallcap 250 ETF Invest In?

ICICI Prudential Nifty Smallcap 250 ETF invests in shares of companies which are ranked between 251 and 500 in terms of market capitalisation within the Nifty 500 universe. 

The Nifty Smallcap 250 index consists of 250 stocks across nearly 20 sectors, such as financial services, healthcare, information technology, capital goods and automotive components.  According to a release by the fund house, the small-cap space has expanded in recent years alongside the broader equity market.

Nifty Smallcap 250 Performance

The fund house said in the release that the market capitalisation of the Nifty Smallcap segment grew from Rs 12 lakh crore in 2018 to Rs 50 lakh crore in 2025. Notably, the index has outpaced the Nifty 500 universe over the same period.

The fund house also mentioned in the release that the Nifty Smallcap 250 Total Returns Index (TRI) has generated higher returns than the Nifty 500 TRI. The fund house, however, added that investors must note that despite the higher returns, the index has witnessed higher volatility in market cycles.

Nifty Smallcap 250 ETF Valuation

As of May 31, 2026, the Nifty Smallcap 250 Index traded at a price-to-earnings (P/E) ratio of 33.70 times, compared with its five-year average of 26.3 times. Its price-to-book (P/B) ratio stood at 3.60 times, in line with historical averages.

ICICI Prudential Nifty Smallcap 250 ETF Managers

The ICICI Prudential Nifty Smallcap 250 ETF will be benchmarked against the Nifty Smallcap 250 TRI.

ICICI Prudential Nifty Smallcap 250 ETF Minimum Investment

The minimum investment amount during the NFO period is Rs 1,000 and thereafter units can be purchased and sold on the stock exchanges in lots of one unit. The scheme does not have an exit load. 

ETFs have become popular among investors as they can potentially offer a relatively low-cost option to increase exposure to market indices through passive investment strategies.