NFO Alert: ICICI Prudential Nifty 500 Index Fund launched by ICICI Mutual Fund in Dec 2024
ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty 500 Index Fund, an open-ended scheme, with the objective of copying the performance of the Nifty 500 Index. The new fund offer of this scheme will open for subscription on 10th December 2024 and will close on 17th December 2024.
The scheme would invest in companies whose securities are part of the Nifty 500 Index with an objective to achieve returns comparable to that of the index with tracking errors. This will be achieved by investing in all the stocks that make up the Nifty 500 Index in the same proportion as they are represented in the index.
The plan will be benchmarked with the Nifty 500 Total Return Index to make sure that the portfolio replicates the general movement of the index, including dividends. It will be run by experienced professionals who will manage and observe it carefully.
The ICICI Prudential Nifty 500 Index Fund would be available in regular as well as direct plans. It would offer an option to choose between growth and Income Distribution cum Capital Withdrawal (IDCW). One can start investing with as low as Rs.100 and further invest in multiples of Re 1.
The fund will invest 95-100% of its corpus in the equity of the companies forming the Nifty 500 Index. The balance of 0-5% would be invested in safe avenues such as money market instruments (TREPs) and debt scheme units so that the fund remains liquid and safe.
A passive strategy will be applied to the scheme, and focus will be held on low tracking error; that is to say, the fund will track the performance of the Nifty 500 Index except for variations designed to keep close proximity to the returns of the index.
The ICICI Prudential Nifty 500 Index Fund is suited for long-term wealth creation. This is more appropriate for those investors who would want exposure to a diversified basket of stocks that represents the Nifty 500 Index. The main aim of this fund is to provide returns similar to the Nifty 500 Index with minimal deviation.
This index fund will give straightforward and efficient investment opportunities to anyone interested in tracking the performance of one of the largest and most comprehensive indices in India. The low-cost structure, along with passive management, can make it attractive to long-term investors interested in building wealth through equity markets.
