New Delhi Asset management company ICICI Prudential Mutual Fund has launched an open-ended Fund of Funds (FOF) scheme that invests in units of ICICI Prudential S&P BSE 500 ETF. The underlying exchange-traded fund (ETF) will track the S&P BSE 500 Index which consists of 500 stocks representing major Indian sectors and disciplines.
The New Fund Offer (NFO) was launched on November 12 and will be open for subscription till November 26. The scheme will be managed by Kayzad Eglim and Nishit Patel.
According to the fund house, the S&P BSE 500 Index is designed to be a broad representation of the Indian market. Consisting of top 500 companies listed on BSE, the index covers all major industries of the Indian economy.
The fund house says that the S&P BSE 500 Total Return Index (TRI) has outperformed the S&P BSE 200 TRI and S&P BSE Sensex TRI six out of 10 times till 2021.
Commenting on the launch, Chintan Hariya, Head – Product Development & Strategy, ICICI Prudential AMC, said, “The ICICI Prudential S&P BSE 500 ETF FOF provides investors with exposure to a vast universe of stocks under BSE 500 that cover over 90% of the market. captures. Capitalization of companies listed on the stock exchange. This product is suitable for investors who aim to diversify investments from a long-term perspective and take advantage of wealth creation opportunities for future goals.”
The S&P BSE 500 ETF FOF provides an opportunity for investors who are looking for a broad asset allocation across their portfolios by market capitalization.
The minimum investment required during the NFO period is 1,000, and in multiples of 1, after that.
The underlying ETF named ICICI Prudential S&P BSE 500 was launched in May 2018 and has assets under management 67 crores.
The top five holdings of the S&P BSE 500 Index are Reliance Industries Limited (7.02%), HDFC Bank Limited (6.09%), Infosys Limited (5.44%) and ICICI Bank Limited (4.82%).
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