ICICI Prudential Mutual Fund launched the ICICI Prudential Nifty 500 Index Fund, an open-ended index scheme that tracks the Nifty 500 Index, providing investors exposure to India’s top 500 companies. The New Fund Offer (NFO) opened for subscription on December 10, 2024, and will close on December 17, 2024.
Key Features
- Portfolio Composition: Offers exposure to large-cap, mid-cap, and small-cap segments, representing approximately 94% of India’s listed universe.
- Investment Minimum: Switch-ins start at ₹100, with additional investments in any amount.
- Exit Load: No exit load.
- Unit Price: Units are valued at ₹10 each during the NFO period.
- Objective: A low-cost, passive investment strategy aimed at mirroring the overall performance of Indian equities.
Abhijit Shah, Head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC, stated:
“With this launch, we aim to provide investors access to a diversified portfolio representing India’s equity market, focusing on long-term wealth creation through passive investments.”
Edelweiss BSE Capital Markets & Insurance ETF
Edelweiss Mutual Fund introduced the Edelweiss BSE Capital Markets & Insurance ETF, an open-ended scheme mirroring the BSE Capital Markets & Insurance Total Return Index. The NFO started on December 10, 2024, and will conclude on December 24, 2024, with continuous trading beginning from January 8, 2025.
Key Features:
- Focus Area: Designed to leverage India’s growing investment and insurance sectors.
- Investment Minimum: ₹5,000 for initial investment, with subsequent investments in multiples of ₹1.
- Portfolio Allocation:
- Capital Markets: 47.21%
- Insurance Sector: 52.79%
- Rebalancing: Quarterly rebalancing and semi-annual reconstitution in June and December.
Radhika Gupta, MD & CEO, Edelweiss Mutual Fund, highlighted:
“This innovative ETF captures India’s mega trend of savings financialization and is the first in a thematic ETF series to drive wealth creation and diversification for investors.”
Notable Constituents:
The ETF portfolio features a mix of capital market firms and insurance providers, including:
- HDFC AMC
- Angel One
- SBI Life Insurance
- ICICI Lombard
- Multi Commodity Exchange Of India (MCX)
Investment Insights
The NFOs of ICICI Prudential Nifty 500 Index Fund and Edelweiss BSE Capital Markets & Insurance ETF cater to distinct investor needs. While the former offers a broad market exposure across India’s top companies, the latter focuses on leveraging growth in capital markets and the insurance sector. Both funds aim to align with long-term trends, offering investors opportunities for diversification and growth in evolving market conditions.
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