One of India’s foremost AMCs, ICICI Prudential Mutual Fund, has launched the ICICI Prudential Nifty 500 Index Fund. It is clear from the name that it is a scheme that will track the Nifty 500 Index. It will be an open-ended scheme. In other words, it can enable the common investor to profit from the growth potential of the top 500 companies in India – both from the private and public sectors. The index is rebalanced once every 6 months which would ensure that it would remain abreast of market trends and valuations.
“With the launch of the ICICI Prudential Nifty 500 Index Fund, we aim to provide investors with an opportunity to gain access to a well-diversified portfolio that mirrors the performance of the Indian equity market as a whole. This offering is designed to cater to those looking for a low-cost, passive investment strategy to participate in the long-term wealth creation potential of Indian equities,” said Abhijit Shah, head of Marketing, Digital, and Customer Experience at ICICI Prudential.
Salient features of the ICICI Prudential fund
The fund offers one of the broadest possible diversifications for any common investor. Through a single investment, one can achieve a broad market coverage. The AMC management has said that the fund will invest in companies that are spread across 50 industrial sectors. Moreover, the diversification is not only across industries but also across large, mid, and small-cap stocks, which will enable it to shifting market trends. Being a passive fund, it will be far less expensive than an actively managed fund. The scheme will provide returns with very small costs.
What is the minimum investment
This scheme offers investors, through a single investment, access to the country’s top 500 companies based on market capitalisation. This bears one of the broadest possible representations of the Indian equity universe. The minimum application amount is really low – Rs 100 plus in multiples of Re 1 thereafter.
Returns comparison
Analysing data, ICICI Pru has said that the broader Nifty 500 index has produced superior returns compared to large-cap funds. “A comparison of the Nifty 500 TRI with the large-cap-focused Nifty 100 TRI over 10 years (2014 to 2024) shows that the broader Nifty 500 index delivered better performance,” the AMC has said.
The AMC has also claimed that even on SIP, India’s increasingly preferred investment mode, Nifty 500 TRI has consistently outperformed the large-cap index. “Over 5 years (as of November 11, 2024), the Nifty 500 TRI delivered 22% returns, compared to 19% by the Nifty 100 TRI,” they have mentioned.
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The ICICI Prudential Nifty 500 Index Fund NFO from one of India’s major AMCs has opened on Tuesday, December 10 and will remain open till December 17, 2024. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
