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ICICI Prudential Nifty Low Vol 30 ETF FOF NFO - Investment Objective, Returns, Taxation, SIP

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Manish Kothari
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ICICI Prudential Nifty Low Vol 30 ETF FOF NFO

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Nifty Low Vol 30 ETF Fund of Fund. The scheme would be investing its assets units of ICICI Prudential Nifty Low Vol 30 ETF.

The New Fund Offer (NFO) starts on 23rd March 2021 and will end on 6th April 2021. The fund will reopen for continuous sale and repurchase within 5 business days of allotment. The date of unit allotment is 06th April 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by investing its assets in units of ICICI Prudential Nifty Low Vol 30 ETF.

Features

  • The fund will be investing a minimum of 95% of its assets in the ICICI Prudential Nifty Low Vol 30 ETF.
  • It aims to generate returns by replicating or tracking the ICICI Prudential Nifty Low Vol 30 ETF.
  • The fund will select the top 30 least volatile stocks out of the Nifty 100 Index.
  • The least volatile stocks out of the Nifty 100 will have the highest weights.
  • The weights of less liquid stocks will be capped at 3%
  • The rebalancing of the underlying ETF is done on a quarterly basis.

Why invest in ICICI Prudential Nifty Low Vol 30 ETF Fund of Fund?

  • The fund aims to generate wealth for investors over the long term.
  • It aims to reduce the impact of market volatility on investments.
  • The fund will invest in a factor-based smart beta ETF which will limit the downside risk.
  • The fund will invest in low volatility bluechip stocks and large caps across different sectors.
  • It will allow investors to invest in an ETF without a Demat account.

ICICI Prudential Nifty Low Vol 30 ETF - Top 10 Holdings

StocksWeightage
Power Grid Corporation of India4.13%
Dabur 3.97%
Ultratech Cement3.95%
Indian Oil Corporation3.91%
Bajaj Auto3.79%
NTPC3.68%
ACC3.67%
Pidilite Industries3.61%
Wipro3.53%
Tata Consultancy Services3.51%

*Data as of 28th February 2021

ICICI Prudential Nifty Low Vol 30 ETF - Top 10 Sector Allocation

SectorWeightage
Computers - Software16.4%
Personal Care9.9%
Cement7.6%
Motor Cycles/Scooters6.8%
Refineries/Marketing6.7%
Consumer Foods6.5%
Pharmaceuticals6.2%
Banks5.9%
Power - Transmission4.1%
Power3.7%

*Data as of 28th February 2021

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Interested in investments in large-cap companies.
  • Interested in investments in constituents of ICICI Prudential Nifty Low Vol 30 ETF.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Units of ICICI Prudential Nifty Low Vol 30 ETF95%100%Moderate to High 

Units of Debt mutual funds, Tri-Party Repo or Reverse Repo

securities and Money Market Instruments

0%5%Low to Moderate

About the Scheme

Name of the fundICICI Prudential Nifty Low Vol 30 ETF FOF NFO
Fund launched byICICI Prudential Mutual Fund 
Asset Management CompanyICICI Prudential Asset Management Company Limited
Type of schemeAn open-ended FoF scheme investing in ICICI Prudential Nifty Low Vol 30 ETF
Investment ObjectiveThe investment objective of the scheme is to generate long-term capital growth by investing its assets in the units of ICICI Prudential Nifty Low Vol 30 ETF.
BenchmarkNifty 100 Low Volatility 30 TRI.
Entry LoadNot Applicable
Exit Load

10% of the units redeemed or switched out within 1 year - NIL,

More than 10% of the units redeemed or switched out within 1 year- 1% of applicable NAV

If units are redeemed or switched out after 1 year- NIL

Taxation

Taxed as Equity

If units are sold within 12 months, gains are taxed as short-term capital gain tax @15%

If units are sold after 12 months, gains are taxed as long-term capital gain tax @10%, on the gains exceeding ₹1 lakh in a financial year

Minimum Application Amount ₹ 1,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 500 & in multiples of ₹ 1 thereafter
STP, & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Kayzad Eghlim and Mr. Nishit Patel

SIP Details

Type Minimum InstallmentsMinimum Amount
Daily SIP6₹100 & in multiples of ₹1 thereafter
Weekly SIP₹100 & in multiples of ₹1 thereafter
Fortnightly SIP6₹100 & in multiples of ₹1 thereafter
Monthly SIP6₹100 & in multiples of ₹1 thereafter
Quarterly SIP4₹5,000 & in multiples of ₹1 thereafter

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