From fund details to auto index performance, here's everything you need to know about this new fund offer (NFO)
ICICI Prudential Mutual Fund’s Auto Index Fund has opened for subscription today. This new fund offer (NFO) will be available till October 6, 2022. This is an open-ended index scheme replicating Nifty Auto Index and will give investors an opportunity to earn from the expected growth in the automobile sector, including the EV segment.
In a statement, ICICI Prudential Mutual Fund said this is India’s first Auto Index Fund which will try to replicate the Nifty Auto Index that has grown at over 14 percent annually since August 2012.
About the Index
The Nifty Auto Index is designed to reflect the behavior and performance of the automobile segment of the financial market. The universe for the offering is Nifty 500. No single stock shall be more than 33 percent and weights of top 3 stocks cumulatively shall not be more than 62 percent at the time of rebalancing. The index is rebalanced semi-annually in March and September respectively, the company said.
Nifty Auto TRI has outperformed Nifty 50 TRI 7 times till August 31, 2022.
(Source: ICICI Prudential Mutual Fund. Data as on August 30, 2022)
Nifty Auto Index has grown at 14.21 percent annually since August 2012. This means that Rs 1,00,000 invested in the Nifty Auto Index in 2012 would be worth Rs 3,77,713.6 by end of August 2022.
SIP returns (%)
Taking SIP amount as Rs 1,000
(Source: ICICI Prudential)
Key things to know before investing in the NFO
According to ICICI Prudential Mutual Fund, investors can consider ICICI Prudential Nifty Auto Index Fund due to following reasons:
(Edited by : Anshul)
First Published: IST