NFO Alert: ICICI Prudential Mutual Fund has introduced two new fund offers (NFOs) targeting value-based investing. These funds are designed to replicate the performance of the Nifty200 Value 30 Index, offering a smart beta, cost-effective investment strategy. Both are open for subscription until October 14, 2024. Let’s dive into the details of the schemes.
ICICI Prudential Nifty200 Value 30 ETF
Objective: The ETF aims to provide returns that closely match the Nifty200 Value 30 Index. Although tracking errors may occur, the objective is to achieve similar performance before expenses.
Scheme Type: Open-ended
Category: Other ETFs
Launch Date: September 30, 2024
Minimum Investment: Investors can start with a minimum investment of ₹100 during the NFO, and additional investments in multiples of ₹1.
Exit Load: None
Index Details: The Nifty200 Value 30 Index includes 30 stocks selected from the Nifty 200 Index based on their ‘Value Score,’ which reflects their potential for value-based growth.
Key Sector Exposure: As of August 2024, the index is heavily weighted towards sectors like financial services, oil & gas, metals & mining, and power. The index is rebalanced semi-annually to stay aligned with market trends.
Check Out The Latest NFOs Launching in October 2024 – Check Out the Full NFO List Now!
ICICI Prudential Nifty200 Value 30 Index Fund
Objective: The index fund aims to replicate the returns of the Nifty200 Value 30 Index by investing in the same stocks in the same proportion as the index. While tracking errors may occur, the scheme is designed to closely match the index’s performance.
Scheme Type: Open-ended
Category: Other Scheme – Index Funds
Launch Date: September 30, 2024
Minimum Investment: Similar to the ETF, the minimum investment is ₹100, with additional investments accepted in multiples of ₹1.
Exit Load: None
Sector Exposure and Performance: The Nifty200 Value 30 Index has outperformed the broader Nifty 200 Index six times in the past ten years, providing potential growth in value-driven sectors like financial services, oil & gas, and power.
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Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund
This NFO from Aditya Birla Sun Life Asset Management Company targets investments in India’s top Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).
Objective: The scheme aims to replicate the total returns of the CRISIL-IBX AAA NBFC-HFC Index by investing in top-rated NBFC and HFC securities, with a focus on minimizing tracking errors.
Strategy: It follows a ‘buy and hold’ approach, rebalancing the portfolio semi-annually until September 2026.
Scheme Type: Open-ended
Category: Index Fund
Fund Managers: Harshil Suvarnkar and Vighnesh Gupta
Risk Profile: Moderate interest rate risk with relatively low credit risk due to the AAA rating of the securities.
Minimum Investment: As per the fund’s structure, the majority (95-100%) is allocated to instruments in the CRISIL-IBX AAA NBFC-HFC Index, with a small portion (0-5%) in debt and money market instruments.
Launch Date: September 30, 2024
End Date: The fund will mature on September 30, 2026, offering a 2-year maturity horizon.
Investor Suitability: This fund is ideal for investors seeking stable returns with minimal credit risk over a 2-3 year period. The target maturity and investment in AAA-rated securities make it a relatively safe option.
This fund provides an excellent opportunity for passive investors looking for long-term exposure to India’s stable NBFC and HFC sectors.
