ICICI Prudential Mutual Fund announced the launch of the ICICI Prudential Nifty Oil & Gas ETF, an open-ended exchange-traded fund (ETF) tracking the Nifty 50 Index.
The scheme opened for public subscription on July 08, 2024, and will close on July 18, 2024. The scheme re-opens for continuous sale and repurchase within five days from the date of allotment.
This is an open-ended ETF tracking the Nifty Oil & Gas Index. This product is suitable for investors seeking
Speaking on the launch of the product, Chintan Haria, Principal - Investment Strategy, ICICI Prudential AMC, said, “ICICI Prudential Nifty Oil & Gas ETF is designed to provide investors with access to a sector that is pivotal to the economy and is currently undervalued. The oil and gas sector is the driving force of modern economic growth, and with growing demand and consumption, it presents a significant investment opportunity. Our ETF aims to allow investors to capitalise on the resurgence in global interest in this sector.”
The investment objective of the scheme is to provide returns before expenses that correspond to the total return of the underlying index subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
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 the scheme will be as follows:
Instruments | Indicative allocations (% of total assets) | |
Minimum | Maximum | |
Equity and Equity related securities of companies constituting the underlying index (Nifty Oil & Gas Index) | 95 | 100 |
Money market instruments including TREPs | 0 | 5 |
To date, no asset management company (AMC) has launched any such fund in this category.
The performance of the scheme would be benchmarked against the Nifty Oil & Gas TRI. The Scheme would invest in stocks comprising the underlying index and endeavour to track the benchmark index
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme.
There will be no exit load for units sold through the secondary market on the BSE/NSE. Investors shall note that the brokerage on sales of the units of the scheme on the stock exchanges shall be borne by the investors.
However, during the process of creation/redemption, there may be transaction costs and/or other incidental expenses (forming part of the cash component), which are liable to be borne by the eligible investors.
The investments under the scheme will be managed by Nishit Patel and Priya Sridhar.
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.
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