NFO Alert: ICICI Prudential Mutual Fund launches the Nifty LargeMidcap 250 Index Fund; all you need to know

ICICI Prudential Mutual Fund announced the launch of the ICICI Prudential Nifty LargeMidcap 250 Index Fund. The scheme opened for public subscription on February 22, 2024, and will close on March 07, 2024.

What kind of mutual fund scheme is this?

This is an open-ended scheme replicating/ tracking the Nifty LargeMidcap 250 Index.

This product is suitable for investors who are seeking

• Long-term wealth creation solution.
• An index fund that seeks to track returns by investing in a basket of Nifty LargeMidcap 250 Index stocks, subject to tracking error.

What is the main objective of investing in this fund?

The objective of the scheme is to invest in companies whose securities are included in the Nifty LargeMidcap 250 Index in the same weightage that they represent in the Nifty LargeMidcap 250 Index to achieve the returns of the above index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.

Also Read: 5 best flexi cap mutual funds gave over 20% annualised returns in the past 5 years

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation (% of Net Assets) of the scheme’s portfolio will be as follows:

Are there similar mutual funds in the market?

To date, only Edelweiss Mutual Fund and Zerodha Mutual Fund have launched such index fund schemes. 

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against Nifty LargeMidcap 250 TRI. It includes all companies from Nifty 100 and Nifty Midcap 150. It intends to measure the performance of large and mid-market capitalisation companies. The aggregate weight of large-cap stocks and mid-cap stocks is 50% each and is reset every quarter. As the corpus of the scheme would be invested in stocks forming part of the Nifty LargeMidcap 250 Index, the same is a suitable benchmark for the scheme.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.

Who will manage this scheme?

The investments under the scheme will be managed by Nishit Patel, Priya Sridhar, and Kewal Shah.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.