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
| Stocks | Weightage |
| Power Grid Corporation of India | 4.13% |
| Dabur | 3.97% |
| Ultratech Cement | 3.95% |
| Indian Oil Corporation | 3.91% |
| Bajaj Auto | 3.79% |
| NTPC | 3.68% |
| ACC | 3.67% |
| Pidilite Industries | 3.61% |
| Wipro | 3.53% |
| Tata Consultancy Services | 3.51% |
*Data as of 28th February 2021
ICICI Prudential Nifty Low Vol 30 ETF - Top 10 Sector Allocation
| Sector | Weightage |
| Computers - Software | 16.4% |
| Personal Care | 9.9% |
| Cement | 7.6% |
| Motor Cycles/Scooters | 6.8% |
| Refineries/Marketing | 6.7% |
| Consumer Foods | 6.5% |
| Pharmaceuticals | 6.2% |
| Banks | 5.9% |
| Power - Transmission | 4.1% |
| Power | 3.7% |
*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
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of ICICI Prudential Nifty Low Vol 30 ETF | 95% | 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 fund | ICICI Prudential Nifty Low Vol 30 ETF FOF NFO |
| Fund launched by | ICICI Prudential Mutual Fund |
| Asset Management Company | ICICI Prudential Asset Management Company Limited |
| Type of scheme | An open-ended FoF scheme investing in ICICI Prudential Nifty Low Vol 30 ETF |
| Investment Objective | The 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. |
| Benchmark | Nifty 100 Low Volatility 30 TRI. |
| Entry Load | Not 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, & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Kayzad Eghlim and Mr. Nishit Patel |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Daily SIP | 6 | ₹100 & in multiples of ₹1 thereafter |
| Weekly SIP | 6 | ₹100 & in multiples of ₹1 thereafter |
| Fortnightly SIP | 6 | ₹100 & in multiples of ₹1 thereafter |
| Monthly SIP | 6 | ₹100 & in multiples of ₹1 thereafter |
| Quarterly SIP | 4 | ₹5,000 & in multiples of ₹1 thereafter |