Publish Date:
ICICI Prudential Mutual Fund has launched ICICI Pru Nifty200 Value 30 ETF, It is an open‐ended Index Exchange Traded Fund tracking Nifty200 Value 30 Index and ICICI Pru Nifty200 Value 30 Index Fund, it is an open-ended Index scheme replicating Nifty200 Value 30 Index.
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The investment objective of ICICI Pru Nifty200 Value 30 Index Fund is to invest in companies whose securities are included in Nifty200 Value 30 Index and subject to tracking errors, to endeavour to achieve the returns of the above index. This would be done by investing in all the stocks comprising the Nifty200 Value 30 Index in the same weightage that they represent in Nifty200 Value 30 Index.
ICICI Pru Nifty200 Value 30 ETF aims to provide returns before expenses that closely correspond to the total return of the underlying index subject to tracking errors.
However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.
Under normal circumstances, ICICI Pru Nifty200 Value 30 ETF will hold an allocation of 95% to 100% in Equity and Equity related securities of companies constituting the underlying index (Nifty200 Value 30 Index) and 0% to 5% in Money market instruments including TREPs, Units of debt schemes.
Under normal circumstances, ICICI Pru Nifty200 Value 30 Index Fund will hold an allocation of 95% to 100% in Equity and Equity related securities of companies constituting the underlying index (Nifty200 Value 30 Index) and 0% to 5% in Money Market instruments including TREPs and Units of debt schemes.
About Nifty200 Value 30 – TRI
The Nifty200 Value 30 is designed to track the performance of 30 companies within the Nifty200 index that exhibit strong value characteristics.
The value score of each company is determined based on Earnings to Price ratio (E/P), Book Value to Price ratio (B/P), Sales to Price ratio (S/P) and Dividend Yield. Stock weight is based on the combination of the stock’s value score and its free-float market capitalization.
(Source: NSE – Nifty200 Value 30 Index)
Compared to the Nifty200 or Nifty50, the Nifty200 Value 30 may offer lower volatility because of its focus on undervalued companies, which tend to have more stable earnings and less speculative growth projections. However, this comes at the cost of possibly missing out on rapid growth phases that growth stocks may experience.
ICICI Pru Nifty200 Value 30 ETF will be invested predominantly in stocks constituting the underlying index in the same proportion as in the Index and endeavour will be to track the benchmark index.
ICICI Pru Nifty200 Value 30 Index Fund will be invested in stocks constituting the respective benchmark of the Scheme and in exchange traded derivatives on the Nifty200 Value 30 Index. Further, the Scheme shall follow a passive investment strategy.
The performance of these schemes may not commensurate with the performance of the underlying index on any given day or over any given period. Such variations are commonly referred to as the tracking error.
Both the Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index. The portfolio of these schemes shall be rebalanced within 7 calendar days to ensure adherence to the asset allocation norms of the Scheme.
Both the schemes will be benchmarked against the Nifty200 Value 30 TRI
Both the schemes will be managed by Mr Nishit Patel and Ms Priya Sridhar.
ICICI Pru Nifty200 Value 30 ETF and Index Fund are open for subscription from September 30, 2024 to October 14, 2024. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment.
The minimum subscription amount for these schemes is Rs 100/- and in multiples of Re. 1 thereafter.
ICICI Pru Nifty200 Value 30 ETF currently does not offer any Plans/Options for investment.
ICICI Pru Nifty200 Value 30 Index Fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth and Income Distribution cum Capital Withdrawal (IDCW) Option.