ICICI Prudential Mutual Fund launches Nifty Metal ETF: Check details

The index is composed of up to 15 stocks selected from the Nifty 500, chosen for their market value to ensure broad representation within the sector

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Nifty Metal ETF, designed to track the performance of the Nifty Metal Index. The new fund offer (NFO) provides investors with an opportunity to gain exposure to a diverse range of companies in the metal sector.

 

“ICICI Prudential Nifty Metal ETF is designed to provide investors with access to one of the critical sectors that forms the backbone of industrial growth,” said Chintan Haria, Principal - Investment Strategy at ICICI Prudential AMC. 

 

“With increasing demand and consumption, especially in a rapidly growing economy like India, this sector presents a compelling long-term investment opportunity,” he said.

 

 

The ETF aims to provide returns that correspond to the Nifty Metal Index, subject to tracking errors. The index includes a maximum of 15 stocks from the metal sector, encompassing both ferrous and non-ferrous metals, selected from the Nifty 500 based on market value.

 

Key features of the ETF include:

 

Exposure to a sector essential for economic growth.

Access to well-established companies experiencing renewed global interest.

Relatively low valuation compared to broader market indices.

Minimum investment of just one unit.

Performance insights

 

The Nifty Metal Index has outperformed the Nifty 500 TRI five times in the last decade, demonstrating its potential for delivering strong returns. As of June 28, 2024, the top constituents of the index include Tata Steel Ltd. (20.97 per cent), Hindalco Industries Ltd. (14.82 per cent), and JSW Steel Ltd. (12.99 per cent).
 

Investment details
 

The minimum application amount during the NFO is Rs 1000 (plus in multiples of Re. 1). The benchmark for this ETF is the Nifty Metal TRI.
 

Fund managers
 

Nishit Patel and Priya Sridhar will manage the ICICI Prudential Nifty Metal ETF.
 

Investment period
 

The NFO for the ICICI Prudential Nifty Metal ETF will be open from August 1, 2024, to August 12, 2024.
 

Who should invest

 

This ETF is suitable for investors seeking long-term capital appreciation and exposure to the metal sector. However, experts advise investors should consult their financial advisors before investing, as the metal sector can be subject to volatility and cyclical trends.