ICICI Prudential Mutual Fund Launches Nifty200 Value 30 ETF and Index Fund
The ICICI Prudential Mutual Fund has announced the launch of two passive investment schemes. These two passive schemes are the ICICI Prudential Nifty200 Value 30 ETF and the ICICI Prudential Nifty200 Value 30 Index Fund. These two products are targeted to provide value-driven and low-cost opportunities for investors in the market, through the smart beta strategy focusing on factor-based investing approaches.
The ICICI Prudential Nifty200 Value 30 ETF is an open-ended index Exchange-Traded Fund (ETF) that tracks the Nifty200 Value 30 Index. Similarly, the ICICI Prudential Nifty200 Value 30 Index Fund is an open-ended fund replicating the same index thereby enabling investors to achieve a structured as well as value-based investment plan.
The New Fund Offer or NFO for both schemes would open on September 30 and close on October 14. One of these value-based funds will now get an opportunity for potential investors. The minimum amount for application in both ETF and the Index Fund during the NFO stands at Rs.100 and further applications are allowed in multiples of Re 1 only.
The Nifty200 Value 30 Index consists of 30 stocks that have been selected from a larger pool of the Nifty 200 Index stocks. Stocks are picked through a “value score” using key valuation factors. This approach will allow value-oriented investors to closely spot stocks with strong growth potential and sustainable long-term prospects.
According to the fund house, new funds catering to the increasing demand for diversified strategies regarding long-term growth have been launched. Value investing is one of the primary strategies concerning the building of a well-balanced portfolio. In this regard, these new schemes by way of Nifty200 Value 30 ETF and Index Fund provide value-based investments in specific areas that are meant to generate long-term growth.
The Nifty200 Value 30 Index is rebalanced every six months, therefore maintaining the market trend and principle of valuation. Allowing regular index adjustments, funds enable seamless adaptation to real-time market flows as a value-investing trend is offered to investors.
Both schemes opt for value investing whereby the techniques are geared towards identifying undervalued stocks with sound fundamentals. With an investment in 30 companies across diverse sectors, the funds go for diversified portfolios to investors. They are also low-cost funds and aim at low portfolio turnover, making them quite cost-effective investments for an investor.
This new fund option in passives reinforces the support of ICICI Prudential Mutual Fund to investors looking for value-driven strategies.
