Investment Objective
ICICI Prudential NIFTY 50 Index seeks to replicate the performance of the Nifty 50 index by passively investing in companies listed in Nifty 50 in proportion to their weights assigned in the index. The fund does not seek to outperform the Nifty 50 or to underperform Nifty 50 Index.
Investment Strategies
- ICICI Prudential NIFTY 50 passively invests predominantly in stocks listed in the Nifty 50 Total Returns Index and in exchange traded derivatives on the Nifty 50 Index.
- A very small part of the fund portfolio will be kept liquid to meet the redemption requirements of the investors.
- The fund may also invest in various derivatives and hedging products from time to time to protect the value of the portfolio and improve the unit holders’ interest.
- The fund intends to maintain a low tracking error by actively managing the portfolio in line with the index.
- It follows a passive investment strategy and its endeavour would be to minimize portfolio turnover subject to the exigencies and needs of the scheme.
- The portfolio turnover of the fund usually will be limited to rebalancing the portfolio on account of new subscriptions, redemptions and change in the composition of Nifty 50 Index.
Who Should Invest
- Investors seeking a wealth creation solution over the long term.
- Those seeking to invest in an index fund scheme that replicates the returns of Nifty 50 Index, subject to tracking error.
- Those seeking exposure to the stocks included in the Nifty 50 index in a cost-effective manner and without a demat account.