Mutual Fund News : ICICI Prudential Mutual Fund Introduces ICICI Prudential NASDAQ 100 Index Fund

Publish Date:

ICICI Prudential Mutual Fund has launched a new scheme - ICICI Prudential NASDAQ 100 Index Fund.

It is a passively managed open-ended index fund replicating/tracking NASDAQ-100 Index®.

Accordingly, the investment objective of ICICI Prudential NASDAQ 100 Index Fund is to invest in companies whose securities are included in NASDAQ-100 Index® and subject to tracking errors, to endeavor to achieve the returns of the above index. However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.

Under normal circumstances ICICI Prudential NASDAQ 100 Index Fund will invest at 95% to 100% of the funds portfolio will be invested in Equity and Equity related securities of companies constituting the underlying index (NASDAQ-100 Index®).

It can invest up to 5% of its assets in Reverse Repo, Tri-party Repo, Units of debt schemes/ETFs.

As per the Scheme Information Document, the corpus of ICICI Prudential NASDAQ 100 Index Fund will be invested in stocks constituting the benchmark of the Scheme and in exchange traded derivatives on the NASDAQ-100 Index®.

The performance of the Scheme may not be commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index.

The stocks comprising the NASDAQ-100 Index® is periodically reviewed by the Corporations. A particular stock may be dropped or new securities may be included as a constituent of the index. In such an event, ICICI Prudential NASDAQ 100 Index Fund will endeavor to reallocate its portfolio but the available investment/ disinvestment opportunities may not permit precise mirroring of the index immediately.

The portfolio shall be rebalanced within 7 days to ensure adherence to the asset allocation norms of the Scheme. Similarly, in the event of a constituent stock being demerged / merged / delisted from the exchange, the Scheme will reallocate the portfolio and seek to minimize the variation from the index.

The scheme may invest 0-5% of the Net Assets in reverse repo, tri-party repo, units of debt schemes/ETFs to meet the liquidity and redemption requirements.

As ICICI Prudential NASDAQ 100 Index Fund is a passively managed scheme, it will track the Underlying Index. The investment Decisions will be determined as per the Underlying Index.

In case of any change in the index due to corporate actions or change in the constituents of the Underlying Index (as communicated by the Index Service Provider), relevant investment decisions will be determined considering the composition of the Underlying Index

The Investment decision of the Scheme will be carried out by the designated Fund Manager.

The scheme’s performance will be benchmarked against NASDAQ-100 TRI®.

It will be managed by Ms Priyanka Khandelwal.

The NFO opens for subscription on September 27, 2021, and closes on October 11, 2021. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (“IDCW”) (Payout and Reinvestment).