Publish Date:
ICICI Prudential Mutual Fund launches a new scheme – ICICI Prudential Nifty Pharma Index Fund
It is an open-ended Index scheme replicating Nifty Pharma Index.
Accordingly, the investment objective of the Scheme is to invest in companies whose securities are included in Nifty Pharma 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 Nifty Pharma Index in the same weightage that they represent in Nifty Pharma Index.
However, there can be no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, ICICI Prudential Nifty Pharma Index Fund will hold an allocation of 95% to 100% of its assets in Equity and Equity related securities of companies constituting the underlying index (Nifty Pharma Index) and 0% to 5% in Money Market instruments including TREPs and Units of debt schemes.
As per the Scheme Information Document, ICICI Prudential Nifty Pharma Index Fund will be invested in stocks constituting the respective benchmark of the Scheme i.e. Nifty Pharma Index. The performance of the Scheme may not 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. A very small portion (0-5% of the Net Assets) of the scheme may be kept liquid to meet the liquidity and expense requirements.
ICICI Prudential Nifty Pharma Index Fund’s performance will be benchmarked against NIFTY Pharma TRI.
The scheme will be managed by Mr Kayzad Eghlim and Mr Nishit Patel.
The NFO opens for subscription on November 25, 2022 and closes on December 09, 2022. The scheme will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: ICICI Prudential Nifty Pharma Index Fund: Aims to Capture Growth of Pharma Stocks?]