ICICI Prudential Mutual Fund has announced two new schemes under its portfolio, aiming to offer more investment options to its customers. The New Fund Offers (NFOs) will be open for subscription from September 30, 2024, and investors can participate until October 14, 2024. The two new schemes are the ICICI Prudential Nifty200 Value 30 Index Fund and ICICI Prudential Nifty200 Value 30 ETF. These schemes focus on value-based investment strategies and offer unique benefits for those looking to invest in equity markets.
ICICI Prudential Nifty200 Value 30 Index Fund: Value-Based Equity Investment
Launch Date: September 30, 2024
Closing Date: October 14, 2024
Category: Equity Value-Oriented
Minimum Investment: ₹100
Lock-in Period: None
Exit Load: None
Benchmark: Nifty200 Value 30 TRI
What Makes This Fund Stand Out?
The ICICI Prudential Nifty200 Value 30 Index Fund is an open-ended equity fund that focuses on value investing. The scheme tracks the Nifty200 Value 30 Index, which selects 30 companies from the Nifty 200 index based on their Value Score. This score is calculated using several key financial ratios, such as the Earnings to Price Ratio (E/P), Book Value to Price Ratio (B/P), Sales to Price Ratio (S/P), and Dividend Yield. The weight of each stock is determined by a combination of its value score and free-float market capitalization.
Investors can start with a minimum of ₹100 and then invest in multiples of ₹1. The fund will allocate 95-100% of its assets to equities and equity-related securities, while 0-5% will be allocated to money market instruments like debt schemes and TREP units.
ICICI Prudential Nifty200 Value 30 ETF: A Low-Cost Index-Tracking Option
Launch Date: September 30, 2024
Closing Date: October 14, 2024
Category: Equity Value-Oriented
Minimum Investment: ₹100
Lock-in Period: None
Exit Load: None
Benchmark: Nifty200 Value 30 TRI
Why Choose This ETF?
The ICICI Prudential Nifty200 Value 30 ETF is an open-ended exchange-traded fund (ETF) that also follows the Nifty200 Value 30 Index. The aim is to replicate the returns of the underlying index, keeping tracking errors to a minimum. Like the index fund, the ETF invests primarily in equity and equity-related securities.
This ETF provides an attractive option for those looking for a low-cost, value-based investment strategy. It allows investors to start with as little as ₹100 and invest in multiples of ₹1 thereafter. The fund aims to provide returns close to the index’s performance while offering a transparent and cost-effective way to invest.
Key Features of Both NFOs
- Investment Objective: Both schemes aim to invest in companies selected based on their “Value Score,” offering a balanced portfolio based on financial metrics.
- Open-Ended Structure: Investors can enter or exit at any time without a lock-in period or exit load, making it convenient for liquidity.
- Equity Focused: Both schemes will allocate 95-100% of their assets to equity and equity-related securities.
- Benchmark: Both schemes will follow the Nifty200 Value 30 TRI index as their performance benchmark.
These two new schemes from ICICI Prudential provide investors with an opportunity to participate in value-based investing while benefiting from a transparent, cost-effective approach. With flexible investment options and no exit load, they offer an attractive proposition for long-term investors.
