NFO Update: ICICI Prudential MF launches ICICI Prudential Consumption ETF

ICICI Prudential Mutual Fund, one of India’s largest mutual fund houses in India, with an asset under management (AUM) of Rs 4.51 lakh crore at the end of September 2021, has announced the launch of Nifty India Consumption ETF. It is an open-ended index ETF, which will track Nifty India Consumption Index. The New Fund Offer (NFO) opens for subscription on October 18, 2021, and closes on October 25, 2021. Nifty India Consumption TRI will be its benchmark index. 

The fund seeks to provide exposure to a diversified portfolio of companies representing domestic consumption sectors such as Consumer Non-durables, Healthcare, Auto, Hotels among others. The minimum investment required during NFO is Rs 1,000 (plus in multiples of Rs 1) 

Through this offering, an investor gets exposure to 30 large and mid-cap companies that are engaged in goods and services used daily, catering to all age groups. All stocks part of Nifty 500 companies can be a part of the consumption sector. More than 50 per cent of the company's revenue must come from domestic markets (other than export income). The top ten holding of the benchmark index includes names like Bajaj Auto, Avenue Supermarts, Nestle India, Mahindra & Mahindra, Titan Company, Maruti Suzuki India, Asian Paints, Bharti Airtel, ITC and Hindustan Unilever. In terms of sector allocation, Consumer Goods has the highest weight in the index followed by Automobile and Consumer Services. 

An investor can consider this offering as a part of their equity allocation. The Scheme will be managed by Kayzad Eghlimand and Nishit Patel.