New Delhi: Asset Management Company (AMC) ICICI Prudential Mutual Fund has launched an open-ended fund mimicking the Nasdaq 100 Index. The scheme, which opened for membership on September 27, will offer exposure to the 100 largest leading non-financial companies globally.
ICICI Prudential Nasdaq 100 Index Fund is the first offering in the passive universe of ICICI Prudential MF.
The Nasdaq 100 Index reflects companies in major industry groups including computer hardware and software, telecommunications, retail/wholesale trading and biotechnology. The index is largely skewed towards technology stocks (44%).
According to ICICI Prudential Mutual Fund, US markets offer investors an opportunity to invest in disciplines such as cloud computing, e-commerce, artificial intelligence, and those that are not readily available in domestic markets.
“The Nasdaq 100 Index primarily comprises innovation-based technology and communications services companies; many of which are part of our daily lives such as Apple, Microsoft, Facebook, Alphabet, Facebook, Netflix, Starbucks. This offering is suitable for investors who Those looking for geographic diversification in their equity allocation in index funds.”
Passive investing is the most basic way to invest in mutual funds and this style of investing aims to mirror the index and not beat it.
The New Fund Offer (NFO) for ICICI Prudential Nasdaq 100 Index Fund closes on October 11.
The fund house highlighted that the Nasdaq 100 index has grown four times over the past two decades and has relatively little correlation with Indian equity indices.
As of August 31, the top five constituents of the Nasdaq 100 index were Apple (11.35%), Microsoft (10.15%), Amazon (7.66%), Alphabet (4.18%) and Facebook (4.05%).
The minimum investment in the scheme is Rs 1,000 during the NFO period, and in multiples of Rs 1 thereafter. There is no exit load for this plan.
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