ICICI Prudential Mutual Fund introduces the ICICI Prudential Nifty 500 Index Fund, an open-ended scheme designed to track the performance of the Nifty 500 Index, offering diversified exposure to India’s top 500 companies.
NFO Details
The New Fund Offer (NFO) of ICICI Prudential Nifty 500 Index Fund will be available for subscriptions from December 10 to December 17, 2024. The fund allows participants to invest in securities included in the Nifty 500 Index. The minimum application amount is Rs 100, with further deposits in multiples of Re 1. The fund will provide both regular and direct plans, including growth and IDCW choices. It will be evaluated against the Nifty 500 Total Return Index (TRI).
According to ICICI Prudential Mutual Funds, this fund aims to invest in companies listed on the Nifty 500 Index, seeking to mirror the index’s performance. The fund will invest in the same proportion of stocks that constitute the Nifty 500 Index, subject to tracking errors. It follows a passive investment strategy, with the portfolio being managed to minimize tracking error while aligning with the index. It will primarily allocate 95-100 per cent of its corpus in equity and equity-related securities, and up to 5 per cent in money market instruments.
The Nifty 500 Index provides diversification across sectors and market caps, offering exposure to large-cap, mid-cap, and small-cap companies. This comprehensive approach allows investors to capture growth opportunities and adapt to market changes.
Abhijit Shah, Head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC, stated, “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.”
Who Should Invest?
ICICI Prudential Mutual Fund suggests that this fund is suitable for investors seeking long-term wealth creation by gaining diversified exposure to India’s top 500 companies. It is ideal for those looking for a low-cost, passive investment strategy to track the performance of the Nifty 500 Index.
