Publish Date:
ICICI Prudential Mutual Fund has Introduced a new scheme – ICICI Prudential Nifty Financial Services Ex-Bank ETF
It is an open-ended exchange traded fund tracking nifty financial services ex-bank index.
Accordingly, the investment objective of the scheme is to provide returns before expenses that 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, ICICI Prudential Nifty Financial Services Ex-Bank ETF will hold an allocation of 95% to 100% of its assets in Equity and Equity related securities of companies constituting the underlying index (Nifty Financial Services Ex-Bank Index) and 0% to 5% in Money market instruments including TREPs.
As per the Scheme Information Document, ICICI Prudential Nifty Financial Services Ex-Bank ETF will invest in stocks constituting the underlying index in the same proportion as in the Index and endeavour to track the benchmark index.
The performance of the Scheme may not be commensurate with the performance of the underlying index on any given day or over any given period. Such variations are commonly referred to as the tracking error. The fund intends to maintain a low tracking error by aligning 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. 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 Nifty Financial Services Ex-Bank ETF’s performance will be benchmarked against Nifty Financial Services Ex-Bank TRI
The scheme will be managed by Mr Kayzad Eghlim and Mr Nishit Patel
The NFO opens for subscription on November 16, 2022 and closes on November 25, 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.
Currently, there are no plans/options under the Scheme.