Mutual Fund News : ICICI Prudential Mutual Fund Introduces ICICI Prudential Nifty50 Equal Weight Index Fund

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ICICI Prudential Mutual Fund has Introduced a new scheme – ICICI Prudential Nifty50 Equal Weight Index Fund

It is an open-ended Index scheme replicating Nifty50 Equal Weight Index

Accordingly, the objective of the scheme is to invest in companies whose securities are included in Nifty50 Equal Weight 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 Nifty50 Equal Weight Index in the same weightage that they represent in Nifty50 Equal Weight Index.

However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.

Under normal circumstances, ICICI Prudential Nifty50 Equal Weight 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 (Nifty50 Equal Weight Index) and 0% to 5% in Money Market instruments including TREPs and Units of debt schemes.

As per the Scheme Information Document, ICICI Prudential Nifty50 Equal Weight Index Fund aims to invest in stocks constituting the respective benchmark of the Scheme i.e. Nifty50 Equal Weight Index and a very small portion (0-5% of the Net Assets) of the scheme may be kept liquid to meet the liquidity and expense requirements.

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 portfolio shall be rebalanced within 7 calendar 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.

ICICI Prudential Nifty50 Equal Weight Index Fund’s performance will be benchmarked against Nifty50 Equal Weight TRI

The scheme will be managed by Mr Kayzad Eghlim and Mr Nishit Patel

The NFO opens for subscription on September 14, 2022 and closes on September 28, 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 5,000/- 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: Is ICICI Prudential Nifty 50 Equal Weight Index Fund a Worthwhile Investment Proposition?]