ICICI Prudential Mutual Fund adds Nifty 50 Equal Weight Index Fund to its passive fund family

ICICI Prudential Mutual Fund launches ICICI Prudential Nifty 50 Equal Weight Index Fund which closes for subscription on September 28, 2022. Read on to find out more.

With around nine index funds already in the basket, ICICI Prudential Mutual Fund adds a new member by launching ICICI Prudential Nifty 50 Equal Weight Index Fund. This scheme is an open-ended index fund that seeks to track the Nifty 50 Equal Weight Index.

The objective of the fund is to invest in constituents similar to that of the Nifty 50 Equal Weight Index. This New Fund Offer (NFO) opens for subscription on September 14, 2022, and closes on September 28, 2022.

Note: Data as on August 30, 2022. Past performances may or may not sustain in the future. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme.

Since the beginning of 2005, the Nifty 50 Equal Weight Index generated a compounded annual growth rate (CAGR) of 14.15 per cent. This means that, if you had invested Rs 10,000 in Nifty 50 Equal Weight Index at the start of 2005, it would have been worth Rs 1.04 lakhs by the end of August 2022.

The above image clearly shows that in 5 out of 10 calendar years Nifty 50 Equal Weight Index outperformed the Nifty 50 index. Even in terms of maximum returns, the Nifty 50 Equal Weight Index outpaced Nifty 50 index. However, in terms of minimum returns Nifty 50 Equal Weight Index falls more than Nifty 50 index. This means that in terms of risk, Nifty 50 Equal Weight Index is riskier than the Nifty 50 index.

In terms of concentration, Nifty 50 Equal Weight Index is less concentrated in the top 5 sectors as compared to Nifty 50 Index. This means that as against Nifty 50 index, the Nifty 50 Equal Weight Index is more diversified.