ICICI Prudential MF launches Nifty 500 Index fund: Key details

ICICI Prudential Nifty 500 Index Fund is an open-ended index scheme replicating Nifty 500 Index

ICICI Prudential Mutual Fund has launched its new product, the ICICI Prudential Nifty 500 Index Fund, aimed at providing investors with an easy route to participate in the growth of India’s top 500 companies. The fund will track the Nifty 500 Index, offering exposure to a diversified portfolio comprising large, mid, and small-cap stocks. The New Fund Offer (NFO) opens on December 10 and will close on December 17.

 

The ICICI Prudential Nifty 500 Index Fund is designed to mirror the performance of the Nifty 500 Index, which represents nearly 94 per cent of the country’s listed market capitalisation. Investors will gain exposure to India’s largest and most influential companies spanning over 50 sectors. This broad market coverage makes it a valuable option for investors seeking robust diversification, sectoral balance, and a dynamic market cap exposure.

 

 

“With the launch of the ICICI Prudential Nifty 500 Index Fund, we aim to provide investors with an opportunity to gain access to a well-diversified portfolio that mirrors the performance of the Indian equity market as a whole. This offering is designed to cater to those looking for a low-cost, passive investment strategy to participate in the long-term wealth creation potential of Indian equities,” said Abhijit Shah, head of Marketing, Digital, and Customer Experience at ICICI Prudential AMC.

 

Fund performance and historical resilience

 

The Nifty 500 Index has demonstrated notable resilience in past years, providing a balanced approach during both large-cap rallies and mid/small-cap downturns. A comparison of the index with the Nifty 100 TRI (large-cap focused) over the last decade reveals the broader Nifty 500 has outperformed, delivering better returns.

 

In the last five years, the Nifty 500 TRI has posted a 22 per cent return, compared to 19 per cent from the Nifty 100 TRI, showcasing its potential for consistent growth. The index’s steady outperformance reinforces its value proposition as an efficient, diversified, and cost-effective investment option.

 

ICICI Prudential Nifty 500 Index fund details

 

NFO period: December 10 to December 17, 2024

 

Benchmark index: Nifty 500 Total Return Index (TRI)

 

Minimum investment: Rs 100 (and in multiples of Re 1 thereafter).

 

Fund manager: Abhijit Shah will manage the fund.

 

Why should investors invest in Nifty 500?

 

Broad market coverage: Access to the top 500 companies based on market capitalisation

 

Robust diversification: Offers robust sector-level diversification encompassing over 50 Industries

 

Dynamic market cap exposure: Offers exposure to large, mid, and small-cap stocks, adapting to changing market trends

 

Cost-efficiency: As a passive investment strategy, the scheme aims to deliver returns with minimal costs and tracking errors

 

Proxy to Indian economy:  Offers a broad coverage of 94 per cent of India’s listed universe.