ICICI Prudential Mutual Fund Introduces Nifty infrastructure ETF
By siliconindia | Friday, 05 August 2022, 07:09 Hrs
Asset management company ICICI Prudential Mutual Fund on Friday launched an open-ended exchange-traded fund (ETF) tracking the Nifty Infrastructure Index.
The new fund offer for ICICI Prudential Nifty Infrastructure ETF will remain open for subscription till 8 August 2022.
Nifty infrastructure index, the underlying index, is a portfolio of companies representing the infrastructure sector, which includes companies belonging to telecom, power, port, air, roads, railways, shipping and other utility service providers.
The underlying index, which was launched on 7 August 2007 comprises of maximum 30 companies listed on the National Stock Exchange of India (NSE).
In terms of sectoral weightage, oil, gas & consumable fuels is the biggest sector in the index with a weight of 30.66%, followed by construction at 14.18%, construction materials at 13.52%, power at 11.90% and telecommunication at 11.88%.
Company-wise, Reliance Industries Ltd. has the biggest weightage at 18.83%, followed by Larsen & Toubro Ltd. (14.18%), Bharti Airtel Ltd. (10.63%), UltraTech Cement Ltd. (4.90%) and Power Grid Corp. of India Ltd (4.75%).
In terms of performance, the Nifty infrastructure total return index (TRI) has delivered a compounded annual growth return (CAGR) of 10.34% since inception, while one-year and five-year return stand at 12.07% and 9.47%, respectively.
According to the fund house, the infrastructure sector is the biggest focus area for the Indian government.
“India plans to spend $1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. There is an intense focus from the government to create world-class infrastructure in India. The increasing impetus to develop infrastructure in the country is attracting both domestic and international players,“ the AMC said.
The scheme would be managed by Kayzad Eghlim and Nishit Patel.
The minimum subscription amount during the NFO period would be Rs 1,000, and in the multiples of Re 1, thereafter. There would be nil exit load on the scheme.