ICICI Prudential AMC launches FMCG ETF NFO

ICICI Prudential Mutual Fund, one of India’s largest AMC by asset under management has announced the launch of ICICI Prudential FMCG ETF. The new fund offer (NFO) will open on July 20 and is set to close on August 20, 2021. The scheme is an open-ended exchange-traded fund (ETF) tracking Nifty FMCG Index.  

NIFTY FMCG Index is designed to reflect the behaviour & performance of fast-moving consumer goods (FMCGs), which are non-durable and consist of mass consumption products, available off the shelf. NIFTY FMCG Index comprises 15 stocks from the FMCG sector listed on National Stock Exchange (NSE). The companies that form part of this index include Hindustan Unilever, which has the highest weightage in the index, followed by ITC and Nestle India. So, investment in this ETF will give you exposure to leading companies forming part of the fourth-largest sector of the Indian economy. The minimum investment required during NFO is Rs 1,000 in multiples of Re 1.   

In the last one year, the index has generated a return of only 20 per cent, which looks quite tepid if we see the overall market that has given spectacular returns. If we include the dividend part in this return, the total return from the index comes out to be 23.11 per cent.   

Speaking on the launch of the product, Nimesh Shah, MD & CEO, ICICI Prudential AMC said, “ICICI Prudential FMCG ETF provides exposure to a basket of securities in the FMCG sector. Higher inclination towards branded products, rising purchasing power owing to higher disposable income, increased digitisation, and growing demand from rural areas, are expected to fuel the FMCG sector growth in India. One can say that this sector approximately accounts for more than half of consumer spending.”   

This fund is suitable for investors looking to gain exposure to the FMCG sector.