ICICI Prudential Launches Two New Passive Funds for Value Investors
The ICICI Prudential Mutual Fund has devised two more investment options, far more value-sensitive offerings, the ICICI Prudential Nifty200 Value 30 ETF, and the ICICI Prudential Nifty200 Value 30 Index Fund, available for subscription between 30 September and 14 October 2024.
Smart beta funds using a factor-based investment strategy and designed to be ultra-low-cost offerings are made to give value-driven performance. The replication is in an ETF and Index Fund manner from the Nifty200 Value 30 Index, which consists of 30 best stocks from the Nifty 200 Index, based on ‘Value Score’.
Historical performance data indicates that the Nifty 200 Value 30 TRI has outperformed the Nifty 200 TRI more often than not over the past ten years. As of August 30, 2024, Financial services, oil, gas & consumable fuels, metals & mining, and power were sectors where the index was well represented. The index is rebalanced twice a year to reflect change in market conditions and to maintain accord with the principles of valuation.
This product is designed to provide a concentration strategy for an investor keen on taking advantage of value-based investment, which is viewed as a highly important long-term portfolio growth characteristic. These products give the investors a solutions-based approach in the interest of the long-term value-driven growth in their investment portfolio.
ICICI Prudential Nifty200 Value 30 ETF Details
- Objective: The scheme aims to deliver returns that closely track the total return of the underlying index, before expenses and subject to tracking errors. No assurance that this goal will be met.
- Scheme Type: Open-ended
- Scheme Category: Other scheme – ETFs
- New Fund Launch Date: September 30, 2024
The minimum investment at the time of the NFO is Rs 100, and subsequent investments will be in multiples of Rs 1. There will be no exit load.
ICICI Prudential Nifty200 Value 30 Index Fund:
- Objective: The scheme aims to invest in companies forming the Nifty200 Value 30 Index. It will attempt to replicate the index returns by investing in all the stocks of the index in their respective proportion. But that without any assurance for effectiveness and not even guaranteed to achieve the same.
- Scheme Type: Open-ended
- Scheme Category: Other schemes – Index Funds
- New Fund Launch Date: September 30, 2024
- Minimum Investment: Rs 100 at the NFO stage, with multiples of Rs 1 allowed after that.
- Exit Load: None
These strategies are designed to be responsive to current market conditions. For instance, in 2023 and 2024, the index was overweighted in financial services as that sector had a high value score. Conversely, the worth was more in midcap stocks in the year 2022, and the least exposure happened to be in the year 2019 of the five years.
