NFO alert: ICICI Prudential MF's Nifty 500 index fund, Edelweiss MF's BSE Capital Markets & Insurance ETF in focus; check key details

ICICI Prudential Mutual Fund has introduced the ICICI Prudential Nifty 500 Index Fund, an open-ended index scheme mirroring the Nifty 500 Index. The new fund offer (NFO) is open for subscription from December 10 to December 17, 2024.

This scheme allows investors to tap into India's top 500 companies, which account for approximately 94% of the country's listed universe. With a diverse portfolio spanning various sectors and market capitalisations, investors gain exposure to large-cap, mid-cap, and small-cap segments. This holistic approach enables investors to seize growth opportunities while staying adaptable to evolving market conditions.

The minimum investment amount for switch-ins is also Rs 100/-, with any amount allowed thereafter. The scheme's corpus will be divided into units valued at Rs 10 each during the NFO period, allowing investors to purchase units at Rs 10 each. There is no exit load associated with this scheme.

“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," Abhijit Shah, Head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC, said.

Edelweiss BSE Capital Markets & Insurance ETF

Edelweiss Mutual Fund has introduced the Edelweiss BSE Capital Markets & Insurance ETF, an open-ended exchange-traded scheme that mirrors the performance of the BSE Capital Markets & Insurance Total Return Index. The NFO of this scheme is currently accepting subscriptions and will conclude on December 24. Following this, the scheme will be available for continuous sale and repurchase starting from January 8.

This unique ETF is designed to replicate the BSE Capital Markets & Insurance Total Return Index and is the first of its kind in India. It aims to leverage the growing trend of investment and wealth creation within the insurance sector, as stated in a press release by the fund house.

The primary goal of this scheme is to deliver returns that align with the performance of the BSE Capital Markets & Insurance Total Return Index, while accounting for tracking errors. 

The scheme will be compared against the BSE Capital Markets & Insurance TRI index and will be overseen by Bhavesh Jain. Investors are required to make a minimum investment of Rs 5,000, with subsequent investments to be made in multiples of Re 1. 

“We are excited to launch an innovative ETF that captures the mega trend of the financialisation of savings by Indians. This ETF is the first in a series of thematic ETFs we plan to roll out in the coming months, each designed to capture key mega trends driving India’s growth story as it moves towards becoming Viksit Bharat by 2047. The ETF market is at an inflection point, and we aim to be at the forefront of this evolution, offering investors products that are not only innovative but also meaningful for wealth creation and diversification,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

The fund's diversified portfolio is split between capital markets accounting for 47.21% and insurance comprising 52.79%. Within the portfolio, there are capital market firms, life insurance companies, general insurance providers, and distributors of financial products. Some of the notable constituents include HDFC AMC, Angel One, Multi Commodity Exchange Of India (MCX), Anand Rathi Wealth, SBI Life Insurance, ICICI Lombard, and ICICI Securities, as reported by the company.

All the stocks included in the ETF will be part of the BSE 500 Index, with a maximum of 30 constituents. The eligible stocks will be ranked based on their average 6-month daily float-adjusted market capitalization figures. The ETF will undergo a semi-annual reconstitution in June and December and will be rebalanced quarterly to ensure optimal performance.