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ICICI Prudential Mutual Fund has launched India’s first Auto ETF namely ICICI Prudential Nifty Auto ETF. The offering aims to provide returns that closely correspond to the total return of the benchmark Nifty Auto Index subject to tracking errors.

The new find will open today, January 5, and will close on 10, the AMC said without offering how much it plans to collect during the NFO phase despite claiming that it is an industry-first.

The open-ended ETF will track the Nifty auto index and will also more or less reflect the behaviour and performance of the automobile segment. The new scheme aims to provide exposure to blue-chip auto and auto ancillary stocks that are part of the benchmark indices.

The key highlights of ICICI Prudential Nifty Auto ETF:

• An open-ended ETF tracking Nifty Auto Index designed to reflect the behaviour and performance of the Automobile segment of the financial market.

• The offering aims to provide exposure to blue-chip auto and auto ancillary names which are part of the benchmark indices

• Demand momentum for autos to sustain on back of a strong recovery in macro activities and opening up of the economy

• Minimum investment required during NFO: 1000/- and in multiple of Re 1

Why investors may consider investing in ICICI Prudential Nifty Auto ETF:

• Provides exposure to many large-cap companies which are focused on producing Electric vehicles

• The Sector is cyclical in nature and the ETF aims to perform when opportunities and market demand rise

• Auto industry is likely to witness positive sales post the pandemic supported by rising individual income

• Skilled labour at low cost, robust R&D centres, and low-cost steel production provides great opportunities for investment

The Nifty Auto TRI has outperformed Nifty 50 TRI in 7 of the 11 preceding years

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