Mutual Fund News : ICICI Prudential Mutual Fund has Launched ICICI Prudential Nifty 200 Momentum 30 ETF and Index Fund

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ICICI Prudential Mutual Fund has introduced two new schemes – ICICI Prudential Nifty 200 Momentum 30 ETF and Index Fund

It is an open-ended exchange-traded fund and Index scheme tracking Nifty200 Momentum 30 Index.

Accordingly, the objective of the Schemes is to invest in companies whose securities are included in Nifty200 Momentum 30 Index and subject to tracking errors, to endeavour to achieve the returns of the above index as closely as possible. This would be done by investing in all the stocks comprising the Nifty200 Momentum 30 Index in the same weightage that they represent in Nifty200 Momentum 30 Index.

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

Under normal circumstances, ICICI Prudential Nifty 200 Momentum 30 ETF and 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 (Nifty200 Momentum 30 Index), and 0% to 5% of its assets in Money market instruments including TREPs.

As per the Scheme Information Document, the investment strategy of ICICI Prudential Nifty 200 Momentum 30 ETF and Index Fund is to stay invested in stocks constituting the underlying index in the same proportion as in the Index and endeavour to track the benchmark 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. 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. Similarly, in the event of a constituent stock being demerged / merged / delisted from the exchange or due to a major corporate action in a constituent stock, the fund may have to reallocate the portfolio and seek to minimize the variation from the index.

ICICI Prudential Nifty 200 Momentum 30 ETF and Index Fund’s performance will be benchmarked against Nifty 200 Momentum 30 TRI.

Both the schemes will be managed by Mr. Kayzad Eghlim and Mr. Nishit Patel.

The NFO opens for subscription on July 22, 2022 and closes on August 02, 2022. Both the schemes will reopen for continuous sale and repurchase Within five 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 for Index fund and Rs 1,000 for ETF and in multiples of Re.1 thereafter.

Currently, there are no plans/ options under the ETF Scheme. The Index scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal option.