ICICI Prudential MF launches ICICI Prudential Nifty Commodities ETF

Are you looking to invest in an excellent ETF for diversification? Check out this article to know more.

ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty Commodities ETF, an open-ended Exchange Traded Fund (ETF) that replicates the Nifty Commodities Index. The objective of the Index is to represent the behaviour and performance of a diverse portfolio of businesses that represent the commodities segment, which includes industries like oil, petroleum products, cement, power, chemical, sugar, metals, and mining. The New Fund Offer (NFO) opens on December 14, 2022, and closes on December 15, 2022. 

India is a significant producer of a number of commodities, and it has a long history of trading in commodities and related derivatives. The market has advanced dramatically regarding technology, openness, and trading activity. 

On the product launch, Chintan Haria, Head - Product Development & Strategy, ICICI Prudential AMC, commented, “The commodity market has always been one of the most attractive investment asset classes. The demand for commodity inputs, categorized as hard and soft commodities, generally remains high as they fuel the economic growth of the country. Investors looking for commodity exposure in their portfolio can consider ICICI Prudential Nifty Commodities ETF.” 

Index: Portfolio Snapshot  

Companies in the index are engaged in oil, petroleum products, cement, power, chemicals, sugar, metals, and mining. Nifty 500 serves as the universe for stock selection. The index will be rebalanced each year on January 31st and July 31st. 

Above index constituents and statistics are as of November 30, 2022. Data source: www.nseindia.com. The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s). 

Performance of the Index 

Since November 2012, Nifty Commodities Index has increased at an annual rate of 11.93 per cent. In 2012, a Rs 1 lakh investment in the Nifty Commodities Index would be worth Rs 3.08 lakhs by the end of November 2022. 

Data as of 30th November 2022. Data source: MFI. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html Past performance may or may not be sustained in the future. The Total return variant of the Index has been used. Returns more than 1 year are CAGR. The performance of the index does not signify performance of the scheme.