ICICI Prudential Nifty50 Value 20 Index Fund launched

NFO opened on 15th Jan, 2024 and closes on 29th Jan, 2024

Chintan Haria, Principal- Investment Strategy, ICICI Prudential AMC

FinTech BizNews Service   

Mumbai, January 16, 2024: ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty50 Value 20 Index Fund. The offering aims to provide returns that closely correspond to the returns of its benchmark Nifty50 Value 20 Index, subject to tracking error. The New Fund Offer (NFO) has opened on 15th Jan 2024 and closes on 29th Jan 2024. The 20 constituents in the portfolio will be from the Nifty 50 Index. 

The value stocks in the underlying index are shortlisted based on parameters like Return on Capital Employed (ROCE), Price Earnings Ratio(PE), Price to Book Value Ratio(PB) and Dividend Yield (DY). 

Stock Selection Criteria in the underlying index

• Stocks are selected on the basis of Return on Capital Employed, Price Earnings Ratio, Price to Book Value Ratio and Dividend Yield and final ranking is derived to select the value stocks from Nifty50
• Weights of 0.4, 0.3, 0.2 and 0.1 are assigned to ranks of ROCE, PE, PB and Dividend Yield respectively to derive the final ranking for selection 
• Ranks are assigned to all the Nifty constituents such that relatively lower Price Earnings Ratio and Price to Book Value Ratio receives a better rank, while higher Dividend Yield and Return on Capital Employed receive a better rank.
• The top 20 companies as per the ascending order of the final ranking are selected to form the index

Index Portfolio

Data Source: NSE. Data as on 31st December, 2023 The performance of the index does not signify performance of the scheme. P/E – Price to Earnings Ratio, P/B – Price to Book Value, Div Yield – Dividend Yield.

Why invest in ICICI Prudential Nifty50 Value 20 Index Fund?

• Exposure to Value Companies forming part of Nifty 50 Index
• Opportunity to get factor based exposure to Large Cap equity
• Potential to Outperform against broader market indices over the period of time
• Relatively Low Cost Access

The individual constituent weight in the index is capped at 15% and the same is reviewed and rebalanced annually in December.

Speaking on the launch of the index fund, Mr. Chintan Haria, Principal- Investment Strategy, ICICI Prudential AMC said, “In elevated market conditions, value investing as a style tends to do well. By investing in ICICI Prudential Nifty50 Value 20 Index Fund an investor can get access to value companies from the Nifty 50 universe. Over a full market cycle the value strategy aims to deliver diversification, downside resilience and has the potential to outperform broader market indices.”

By tracking the top 20 most value oriented blue-chip companies, the scheme offers wealth creation opportunities for investors. Historically, the Nifty 50Value 20 Index has outperformed the Nifty 50 Index on 1-year, 3-year, and 5-year periods with lower volatility and better downside risk limitation as compared to Nifty 50. 

Rolling Period Returns

 Data as on 31st Dec 2023. Performance of the index does not signify the returns of the scheme. Past performance may or may not be sustainable in the future. Data Source: https://www.niftyindices.com/indices/equity/strategy-indices/nifty-50-value-20, MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html 

SIP Returns

 Data as on 31st December 2023, SIP investment of Rs.1000 at the beginning of each month for last 10 years. Performance of the index does not signify the returns of the scheme. Past performance may or may not be sustainable in the future. 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully