For investors looking for long-term capital growth simulating the Nifty Midcap 150 Index, ICICI Pru. Mutual funds have launched passive funds.
One can invest in the NFO of ICICI Prudential Midcap 150 Index Fund from December 3 to December 17, 2021.
NFO Review: Various mutual fund companies are launching many New Fund Offers (NFOs) this year. Doing so helps asset management companies to expand their product basket. ICICI Prudential Mutual Fund has also launched its passive fund NFO, which is an index fund. Index funds are called low cost funds, which add to your returns. High cost funds may give high returns, but the returns after expense are low as expenses take up to 25% of your returns. Financial planners believe that passive fund portfolios are transparent, and these funds are gaining popularity among investors.
ICICI Prudential Midcap 150 Index Fund (G) Information
Duration of NFO: December 3 to December 17, 2021
Scheme: Open-ended scheme.
Plan Type: Regular and direct plans. Each plan offers Growth and Income Distribution Cum Capital Withdrawal (IDCW) (payout and re-investment facility).
Investment Objective: The investment objective of the scheme is to provide investment returns commensurate with the total returns of the securities represented by the Nifty Midcap 150 Index before expenditure, subject to tracking errors.
Unit Price: 10 rupees
Minimum Investment: 5,000 rupees
Benchmark: Nifty Midcap 150 TRI
Fund Managers: Qayzad Eghlim and Nishit Patel
Riskometer: very high
Who is right for: The product is suitable for investors who are looking for long term capital growth by investing in equity and equity related securities and portfolios mimicking the structure of Nifty Midcap 150 Index, subject to tracking errors.
This year Aditya Birla Sun Life also launched a fund tracking the same index, which has so far given 26 per cent returns and has an expense ratio of 1.03 per cent.
Experts say that mid-cap stocks can cause huge losses during a fall in the market. Hence there are high risks associated with investing in such index funds.
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