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ICICI Prudential Midcap 150 Index Fund NFO – Closes 17 Dec

  • Rudri Rawell
  • Jan 12 2022
  • 3 minutes
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ICICI Prudential Mutual Fund recently launched a new fund offer – ICICI Prudential Midcap 150 Index Fund. This NFO is open for subscription, starting from 03 December 2021 through 17 December 2021. 

Investment objective of the fund

This is an open-ended index scheme that will replicate the composition of Nifty Midcap 150 Index. It is expected to primarily invest in a basket of stocks that form part of this index and achieve returns in line with the index performance. The Nifty Midcap 150 Index represents 150 mid-cap companies ranked from 101 to 250 in terms of market capitalization from the Nifty 500 Index.

Why should you apply for the NFO?

  • Passively managed: ICICI Prudential Midcap 150 Fund is an index fund that is passively managed since it follows the composition of Nifty Midcap 150 index. It therefore offers the right diversification opportunity for an investment portfolio comprising actively managed funds or stock investments. A passively managed fund also attracts lower expense ratios, thereby allowing investors to save on cost of investment. 
  • Exposure to Mid Cap segment: Offers exposure to mid-cap market segment since the scheme is expected to invest in well-diversified constituents of Nifty Midcap 150 index that are distributed across key sectors. Investors can gain access to the growth stories of many mid-cap companies that may carry the potential of becoming large cap in the near to long term.
  • Easy to invest: The minimum capital requirement for investing in this scheme is only Rs. 100. The scheme also allows non-demat account holders to invest and gain exposure to the mid-cap market. Investors can also benefit from systematic investment plan and systematic transfer plan options available in the scheme.
  • Cost effective: For a small SIP of Rs 100, you can own all 150 stocks in the index which comes across as an execellent way of diversifying your portfolio.

Comparing historical performance of Nifty Midcap 150 index

The historical returns of this benchmark index compared to Nifty50 and Nifty Small-cap 250 TRI are as below:

Nifty Midcap 150 index has outperformed both Nifty 50 index and Nifty Smallcap 250 index 2 times
over last 10 calendar years while it has outperformed the Nifty 50 Index 7 of the last 10 calendar

2012201520172020
Nifty Midcap 150 TRI46.4%9.7%55.9%25.5%
Nifty 50 TRI29.3%-3%30.3%16.1%
Nifty Smallcap 250 TRI40.1%11.3%58.6%26.4%
Source: Fund Offer document, Past performance does not indicate similar performance in future

Fund details 

Scheme nameICICI Midcap 150 Index Fund NFO
Type of SchemeAn open-ended index scheme investing in composition of Nifty Mid-cap 150 Index
Category of the schemeIndex fund
BenchmarkNifty Mid-cap 150 Index
Plan optionsRegular plan & Direct plan with the following options
Growth option
Direct Plan Income Distribution cum Capital Withdrawal
IDCW payout and reinvestment
Fund ManagerKayzad Eghlim & Nishit Patel
Exit LoadNil
Minimum InvestmentDuring NFO: Rs. 100 and multiples of Re 1 thereafter
Additional purchase: Minimum Rs. 100 and multiples of Re. 1 thereafter
NFO Period03 Dec – 17 Dec 2021

Where can you invest in the NFO?

Head over to the Finity App to invest in this NFO. 

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