ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty 50 Equal Weight Index Fund. The scheme will invest in the components of Nifty 50 Equal Weight Index. NFO opens on September 14, 2022 and closes on September 28, 2022.
Speaking on the launch of the product, Chintan Hariya, Head – Product Development & Strategy, ICICI Prudential AMC said, “Since indices perform differently under variable market conditions, it is prudent to diversify indices with different weighting methodology . The Nifty 50 Equal Weight Index is less concentrated in the top 5 sectors than the Nifty 50 Index, thus providing an excellent diversification opportunity. Furthermore, there is no size bias as the index tries to minimize the impact of large companies on index performance.”
Why should investors consider ICICI Prudential Nifty 50 Equal Weight Index Fund?
– The index invests in the components of the Nifty 50 Index which includes the top 50 stocks in India by market capitalization.
An Equal Weighting Index has an empirically higher dividend yield than a market capitalization weighted index because it allocates funds equally to its constituents.
– This plan exhibits SMART-beta characteristics as the index intended to have no size bias.
Will allow non-demat account holders to invest in an equal weighted index fund.
The index is less focused and helps in providing stability to the portfolio.
catch all Mutual Fund News And updates on Live Mint. download mint news app To get daily market updates & Live business News,