NFO alert: ICICI Prudential Mutual Fund launches new value-focused investment options - Here are the complete details

Targeting value-conscious investors, the new funds provide a strategic, low-cost approach to value-based investing within the Nifty 200 universe.

ICICI Prudential Mutual Fund (ICICI Prudential AMC) has introduced two new investment vehicles: ICICI Prudential Nifty200 Value 30 ETF and ICICI Prudential Nifty200 Value 30 Index Fund. Both offerings aim to provide investors with a cost-effective way to tap into value investing within the Nifty 200 universe.

Investment objective
The funds are designed to replicate the Nifty200 Value 30 Index, which focuses on identifying 30 undervalued stocks within the Nifty 200. This smart beta strategy leverages valuation factors, aiming to deliver long-term growth through a factor-based approach. The portfolio is well-diversified across various sectors like Financial Services, Oil & Gas, Metals, and Telecom, allowing investors to benefit from market opportunities while keeping costs low. The index is rebalanced semi-annually to adjust for market conditions and value shifts.

Chintan Haria, Principal – Investment Strategy at ICICI Prudential AMC stated, "At a time when investors are seeking diversified strategies for long-term growth, value investing remains a crucial component of a well-rounded portfolio. We are excited to introduce the Nifty200 Value 30 ETF and Index Fund, offering investors a targeted approach to value-based investing, which is designed to provide growth over the long term."

Key features of the NFO

• New Fund Offer (NFO) Dates: Opens on September 30, 2024, and closes on October 14, 2024.
• Minimum Investment: Rs 100 (and multiples of ₹1).
• Value-Based Investing: Targets potentially undervalued stocks for long-term growth.
• Diversification: Provides exposure to 30 companies across various sectors.
• Transparency and Low Cost: Offers low expense ratios and potentially lower portfolio turnover.
• Sector Diversification: The index has exposure to sectors like financials, energy, materials, and telecom, which can change based on the value score.

Performance History
The Nifty 200 Value 30 TRI outperformed the Nifty 200 TRI six times during the last ten years, indicating that value investing is a feasible strategy for an investor's portfolio under certain market conditions.

Should you invest?
Both the schemes use a "Value Score" to select 30 stocks from the Nifty 200, making them ideal for value-conscious investors. The score is based on key valuation metrics, offering targeted exposure to undervalued companies with strong growth potential. With a low-cost structure and a diversified portfolio, these funds can be a solid addition to a long-term investment strategy.

Conclusion
The ICICI Prudential Nifty200 Value 30 ETF and Index Fund offer a unique opportunity for value-focused investors. With a low-cost structure and access to a diversified set of undervalued stocks, these funds are well-suited for long-term wealth creation. However, investors should remain cautious of market risks and ensure they align the funds with their overall financial objectives. Given the index's strong historical performance, this could be a viable option for those seeking value-driven growth in their portfolios.

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