NFO alert: ICICI Prudential Nifty 500 Index Fund - A gateway to invest in India’s top 500 companies

Capture India’s economic growth with a well-diversified, cost-efficient passive investment strategy - the ICICI Prudential Nifty 500 Index Fund.

ICICI Prudential Mutual Fund has unveiled an exciting new offering, the ICICI Prudential Nifty 500 Index Fund, an open-ended index scheme that mirrors the Nifty 500 Index.

This New Fund Offer (NFO), opening from December 10 to December 17, 2024, provides investors access to the performance of India’s top 500 companies by market capitalisation.

With a minimum investment of just Rs 100, the fund is designed to help investors tap into the potential of India’s fast-growing economy and build long-term wealth through a cost-effective, passive strategy.

Features of ICICI Prudential Nifty 500 Index Fund

1. Broad market coverage: Gain exposure to India’s top 500 companies, representing 94 per cent of the nation’s listed universe.
2. Robust diversification: Invest in over 50 industries for sector-level diversification.
3. Dynamic market cap exposure: Balanced allocation across Large-Cap, Mid-Cap, and Small-Cap stocks to adapt to evolving market trends.
4. Cost efficiency: Low expense ratio as a passive fund, minimizing costs and tracking errors.
5. Semi-annual rebalancing: Aligns with the latest market trends and valuation principles.
6. Proxy to Indian economy: This represents the Indian equity market, a reflection of the country's robust economic growth.

ICICI Prudential Nifty 500 Index Fund Details

• NFO period: December 10 to December 17, 2024
• Benchmark index: Nifty 500 Total Return Index (TRI)
• Minimum investment: Rs 100 (and in multiples of Re 1 thereafter)
• Fund manager: Abhijit Shah, Head of Marketing, Digital, and Customer Experience, ICICI Prudential AMC

Management Comments
Abhijit Shah, Head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC, emphasized, "With the ICICI Prudential Nifty 500 Index Fund, we aim to provide investors with an opportunity to participate in India’s growth story through a well-diversified portfolio. This fund caters to individuals seeking a low-cost, long-term wealth creation vehicle that mirrors the Indian equity market."

Riding India’s Economic Growth
India’s economy continues its upward trajectory, presenting vast opportunities for investors. With robust GDP growth projections, the fund provides exposure to industries that drive India’s economic success. From large-cap stalwarts to emerging small-cap innovators, the Nifty 500 Index captures a comprehensive snapshot of India’s financial and industrial landscape.

Should You Invest?
The ICICI Prudential Nifty 500 Index Fund is an excellent option for:

• First-time investors: Looking for low-cost exposure to India’s equity market.
• Seasoned investors: Seeking diversification across market caps and sectors.
• Long-term planners: Aiming to build wealth through systematic investing (SIP) in a broad-based index fund.
• Passive strategy advocates: Preferring market-linked returns without active fund management intervention.

With its ability to capture growth opportunities across large, mid, and small-cap stocks, this fund offers a compelling proposition for anyone looking to ride India’s economic growth story. However, being an equity-oriented fund, it is better suited for investors with a long-term horizon and tolerance for market volatility.

Conclusion
The ICICI Prudential Nifty 500 Index Fund offers investors a unique opportunity to participate in the comprehensive growth of India’s equity markets. By combining cost efficiency, diversification, and exposure to top-performing companies across sectors, this fund is poised to be a cornerstone of long-term investment portfolios.

Disclaimer: The article is for informational purposes only and not investment advice.