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
| 2012 | 2015 | 2017 | 2020 | |
| Nifty Midcap 150 TRI | 46.4% | 9.7% | 55.9% | 25.5% |
| Nifty 50 TRI | 29.3% | -3% | 30.3% | 16.1% |
| Nifty Smallcap 250 TRI | 40.1% | 11.3% | 58.6% | 26.4% |
Fund details
| Scheme name | ICICI Midcap 150 Index Fund NFO |
| Type of Scheme | An open-ended index scheme investing in composition of Nifty Mid-cap 150 Index |
| Category of the scheme | Index fund |
| Benchmark | Nifty Mid-cap 150 Index |
| Plan options | Regular plan & Direct plan with the following options Growth option Direct Plan Income Distribution cum Capital Withdrawal IDCW payout and reinvestment |
| Fund Manager | Kayzad Eghlim & Nishit Patel |
| Exit Load | Nil |
| Minimum Investment | During NFO: Rs. 100 and multiples of Re 1 thereafter Additional purchase: Minimum Rs. 100 and multiples of Re. 1 thereafter |
| NFO Period | 03 Dec – 17 Dec 2021 |
Where can you invest in the NFO?
Head over to the Fisdom App to invest in this NFO.
