Publish Date:
ICICI Prudential Mutual Fund has launched a new scheme - ICICI Prudential IT ETF.
It is an open ended Exchange Traded Fund that will track the Nifty IT Index.
Accordingly, the investment objective of the scheme is to provide returns before expenses that closely correspond to the total return of the underlying index subject to tracking errors.
However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Under normal circumstances the scheme will invest at least 95% of its assets in Equity and Equity related securities of companies constituting the underlying index (NIFTY IT Index). A very small portion (0% to 5% of its assets) may be kept in Units of debt schemes, debt ETFs, TREPs, Repo and Reverse Repo, cash & cash equivalents.
ICICI Prudential IT ETF would invest predominantly in stocks constituting the underlying index (NIFTY IT Index) in the same proportion as in the Index and endeavor to track the benchmark index. A very small portion (0-5% of the Net Assets) of the fund may be kept liquid to meet the liquidity and expense requirements.
ICICI Prudential IT ETF will track the Underlying Index and is a passively managed scheme. The investment Decisions will be determined as per the Underlying Index.
The Scheme, in general, will hold all of the securities that comprise the Underlying Index in the same proportion as the index. The Investment Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible.
The scheme’s performance will be benchmarked against NIFTY IT Total Return Index.
It will be managed by Mr Kayzad Eghlim.
The NFO opens for subscription on August 12, 2020 and closes on August 17, 2020.
The Units of the Scheme is proposed to be listed on National Stock Exchange of India Limited, and BSE Limited.