ICICI Prudential Mutual Fund launches Nifty Infrastructure ETF

The new fund offer for ICICI Prudential Nifty Infrastructure ETF will be open for subscription till August 8, 2022.

Nifty Infrastructure Index, the underlying index, is a portfolio of companies representing the infrastructure sector, which includes companies related to telecom, power, port, air, road, railways, shipping and other utility service providers.

The underlying index, which was launched on 7 August 2007, comprises a maximum of 30 companies listed on the National Stock Exchange of India (NSE).

In terms of sectoral weightage, oil, gas and consumable fuel is the largest sector in the index, weighing 30.66 per cent, followed by construction materials at 14.18%, construction materials at 13.52%, electricity at 11.90% and telecommunications at 11.88%.

Company-wise, Reliance Industries Limited has the highest weightage of 18.83%, followed by Larsen & Toubro Limited (14.18%), Bharti Airtel Limited (10.63%), UltraTech Cement Limited (4.90%) and Power Grid Corp. of India Limited (4.75%).

In terms of performance, the Nifty Infrastructure Total Return Index (TRI) has given a Compound Annual Growth Return (CAGR) of 10.34% since inception, while the one-year and five-year returns are 12.07% and 9.47% respectively.

According to the fund house, the infrastructure sector is the biggest focus area for the Indian government.

“India plans to spend $1.4 trillion on infrastructure during 2019-23 for the country’s sustainable development. Intensive attention is being given by the government to create world class infrastructure in India. The increasing pace of developing infrastructure in the country is attracting both domestic and international players,” the AMC said.

The scheme will be managed by Kayzad Eglim and Nishit Patel.

The minimum subscription amount during the NFO period will be 1,000, and thereafter in multiples of Rs. There will be zero exit load on the scheme.

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