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NEW DELHI: Asset management company (AMC), ICICI Prudential Mutual Fund, has launched an open-ended equity scheme tracking the Nifty Midcap 150 Index, which represents the next 150 companies (ranked 101-250) based on full market capitalisation from the Nifty 500 Index.
The new fund offer (NFO) for ICICI Prudential Midcap 150 Index Fund will be open for subscription during 3-17 December.
Speaking on the product launch, Chintan Haria, head-product development and strategy, ICICI Prudential AMC, said, “ICICI Prudential Midcap 150 Index Fund will provide investors exposure to mid-cap segment of the market, as the scheme will invest in well-diversified Nifty Midcap index constituents spread across key industries. By investing in this fund, investors can participate in the growth story of many of the midcap stocks that have the potential of becoming large-caps."
As per the fund house, the Nifty Midcap Index has consistently outperformed Nifty 50 Total Return Index (TRI) and Nifty Smallcap 250 TRI over the last 10 years (Data as on 24 November, source MFIE). The index has provided better returns than the Nifty 50 index in seven of the last 10 calendar years.
Nifty Midcap 150 TRI has managed to beat Nifty 50 TRI on a one-, five, seven- and 10-year basis.
One-, five-, seven- and 10-year returns of Nifty Midcap 150 TRI stand at 60.5%, 20.7%, 17.5%, 20.8%, respectively, compared with 37%, 18.3%, 12.3% and 17.5% delivered by Nifty 50 TRI during the same time frame.
The top constituents in the Nifty Midcap 150 Index are Adani Total Gas Ltd (2.27%), Tata Power Co. Ltd (2.08%), SRF Ltd. (1.76%), SRF Ltd. (1.76%) and Mindtree Ltd. (1.65%).
In terms of sectoral allocation, financial services has the highest weightage at 17.74%, followed by consumer goods (11.11%), industrial manufacturing (9.59%), automobile (8.64%) and information technology (7.85%).
The minimum application for the scheme during the NFO period will be ₹100 and in the multiples of Re 1, thereafter. Kayzad Eghlim and Nishit Patel are the fund managers of the scheme. There is zero exit load in the scheme.
