Home / Mutual Funds / News /  ICICI Prudential MF launches Nifty50 Equal Weight Index Fund. Check details
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ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty50 Equal Weight Index Fund. The scheme will invest in the constituents of the Nifty50 Equal Weight Index. The NFO opens on September 14, 2022, and closes on September 28, 2022.

Speaking on the launch of the product, Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “Since indices perform differently under variable market conditions, it is prudent to diversify across indices with different weightage methodology. Nifty50 Equal Weight Index is less concentrated in the top 5 sectors as compared to the Nifty 50 Index, thus providing an excellent diversification opportunity. Also, there is no size bias as the index tries to reduce the impact of bigger companies on the index performance."

Why should investors consider ICICI Prudential Nifty50 Equal Weight Index Fund?

- The index invests in the constituents of Nifty 50 Index which consists of the top 50 stocks in India based on market capitalization.

- An equal weight index has empirically higher dividend yield as compared to a market capitalization weighted index as it allocates funds equally to its components.

- The scheme exhibits smart-beta characteristics as the index intends to have no size bias.

- Will allow non-demat account holders to seek exposure to an equal weighted index fund.

- The index is less concentrated and helps in providing stability to the portfolio.

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