BackICICI Prudential MF launches S&P BSE 500 ETF Fund of Funds
The underlying exchange-traded fund will track the S&P BSE 500 index comprising 500 stocks representing major Indian sectors and themes
PremiumNEW DELHI : Asset management company ICICI Prudential Mutual Fund has launched an open-ended fund of funds (FoF) scheme that invests in the units of ICICI Prudential S&P BSE 500 ETF. The underlying exchange-traded fund (ETF) will track the S&P BSE 500 index comprising 500 stocks representing major Indian sectors and themes.
The new fund offer (NFO) was launched on 12 November and will be open for subscription till 26 November. The scheme would be managed by Kayzad Eghlim and Nishit Patel.
According to the fund house, the S&P BSE 500 index is designed to be a broad representation of the Indian market. Consisting of the top 500 companies listed at BSE, the index covers all major industries in the Indian economy.
The fund house says that S&P BSE 500 total return index (TRI) has outperformed S&P BSE 200 TRI and S&P BSE Sensex TRI six out of 10 times till 2021.
Speaking of the launch, Chintan Haria, head-product development and strategy, ICICI Prudential AMC, said, “ICICI Prudential S&P BSE 500 ETF FOF provides investors exposure to a vast universe of stocks under BSE 500 that captures more than 90% of the market capitalization of companies listed on a stock exchange. This product is suitable for investors aiming to capitalize on the wealth creation opportunities for future goals by diversifying investments with a long-term view."
S&P BSE 500 ETF FoF provides an opportunity for investors looking for a broader asset allocation in their portfolio across market capitalizations.
The minimum investment required during the NFO period is ₹1,000, and in the multiples of ₹1, thereafter.
The underlying ETF called ICICI Prudential S&P BSE 500 was launched in May 2018 and has assets under management of ₹67 crore.
The top five holdings of the S&P BSE 500 index are Reliance Industries Ltd (7.02%), HDFC Bank Ltd (6.09%), Infosys Ltd (5.44%) and ICICI Bank Ltd (4.82%).
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