ICICI Prudential Mutual Fund has Launched ICICI Prudential Nifty Infrastructure ETF

Aug 05, 2022

ICICI Prudential Mutual Fund has introduced a new scheme – ICICI Prudential Nifty Infrastructure ETF

It is an open-ended Exchange Traded Fund tracking Nifty Infrastructure Index.

Accordingly, the investment objective of the scheme is to provide returns before expenses that closely 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.

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

Under normal circumstances, ICICI Prudential Nifty Infrastructure 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 Infrastructure Index) and 0% to 5% of its assets in Money market instruments including TREPs.

As per the Scheme Information Document, the corpus of the Scheme will be invested in stocks constituting the respective benchmark of the Scheme i.e. Nifty Infrastructure Index and 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 commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing 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, the Scheme will reallocate the portfolio and seek to minimize the variation from the index.

ICICI Prudential Nifty Infrastructure ETF’s performance will be benchmarked against Nifty Infrastructure TRI.

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

The NFO opens for subscription on August 05, 2022 and closes on August 08, 2022. Both the schemes 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 Re.1 thereafter.

Currently, there are no plans/ options under the Scheme.