ICICI Prudential Nifty ETF NFO

ICICI Prudential Nifty ETF NFO is sponsored by ICICI Bank Ltd. ICICI Prudential Asset Management Company Limited will be the investment manager for the fund. ICICI Prudential Nifty ETF is an an open-ended Index Exchange Traded Fund. The units allotted under this scheme qualify to be eligible security under Rajiv Gandhi Equity Savings Scheme, 2012.

NFO Opens on 01 Mar 2013

NFO Closed on 18 Mar 2013

Download ICICI Prudential Nifty ETF NFO KIM

After NFO units of ICICI Prudential Nifty ETF will be listed on National Stock Exchange of India.

Face value of unit is 10 rupees.

Minimum investment amount during NFO is 5000 rupees and in multiples of 1 rupee thereafter

The investment objective of the scheme to adopt a passive investment strategy which is also known as indexing strategy to provide return on investments before fund expenses close to underlying index (CNX Nifty) and the returns are subject to tracking error. Usually returns on funds vary with bench mark index due to fund expenses, corporate actions like rights issue, bonus issue, rounding off of securities which are part of index, requirement of keeping liquid money which are not fully invested in the index etc.

As the fund seeks to invest 95% t0 100% Securities of companies constituting CNX Nifty Index (the Underlying Index) ICICI Prudential Nifty ETF are eligible for tax exemption under Rajiv Gandhi Equity Savings Scheme – 2012.  To be eligible for tax deduction under section 80CCG, investors should be first time retail investors.  Income of the investors should be less than 12 Lacks per annum.  Maximum amount of investment eligible for exemption under the section is 50000 rupees per year.  An investor can claim tax deduction for three consecutive years for the investments made during each financial year subject to the conditions.

Exchange traded funds are  traded on stock exchanges and have high liquidity risk and very less trading activity happens in these units.  Only specific investors who can afford high lot size transactions can transact directly with mutual fund house.  Rest of the investors have to buy sell ICICI Prudential Nifty ETF on National Stock Exchange of India.

For more details you can visit icici prudential mutual fund website