Mutual Fund News : ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty Auto Index Fund

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ICICI Prudential Mutual Fund has Introduced a new scheme – ICICI Prudential Nifty Auto Index Fund

It is an open-ended index scheme replicating Nifty Auto Index.

Accordingly, the objective of the Scheme is to invest in companies whose securities are included in Nifty Auto 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 Auto Index in the same weightage that they represent in Nifty Auto Index.

However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns.

Under normal circumstances, ICICI Prudential Nifty Auto 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 Auto 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 Auto Index Fund will invest in stocks constituting the respective benchmark of the Scheme and in exchange traded derivatives on the Nifty Auto 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.

The stocks comprising the Nifty Auto Index is periodically reviewed by NSE Indices. A particular stock may be dropped or new securities may be included as a constituent of the index. In such an event, the Scheme will endeavour 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 calendar days to ensure adherence to the asset allocation norms of the Scheme.

ICICI Prudential Nifty Auto Index Fund’s performance will be benchmarked against Nifty Auto TRI

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

The NFO opens for subscription on September 22, 2022 and closes on October 06, 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 Auto Index Fund: Aims to Benefit from Growth Potential of Auto Stocks]