Take a Piece of IT Growth Pie with ICICI Pru Nifty IT Index Fund, NFO Close on August 11
ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty IT Index Fund. It is an open-ended scheme that invests in a basket of Nifty IT stocks, and aims to capture the returns of the index, subject to tracking error.
The New Fund Offer (NFO) is open for subscription on July 28, 2022 and will close on August 11, 2022.
According to a press release by the mutual fund house, investors can start with a minimum investment of Rs 1,000 and thereafter in multiples of Rs. 1. Minimum additional application amount for switch-in is Rs. 1,000 and in any amount thereafter.
According to ICICI Prudential Mutual Fund, since it is an index fund, investors can use a Systematic Investment Plan (SIP) or a Systematic Transfer Plan (STP). During this period, investors can invest daily, weekly, fortnightly or monthly through SIPs of Rs 1,000, and thereafter in multiples of Rs. 1. The minimum amount of the installment mentioned is applicable only at the time of registration.
It further said that they launched ICICI Prudential Nifty IT Index Fund to enable investors to participate in the growth story of IT and technology sector without bothering about understanding the complexities of the IT sector. The top 10 index constituents include reputed companies from the IT sector, such as Tata Consultancy Services Ltd., Infosys Ltd., Tech Mahindra Ltd., HCL Technologies Ltd., Wipro Ltd., Mphasis Ltd., Mindtree Ltd., Larsen & Toubro Infotech Ltd., Coforge Ltd. and L&T Technology Services Ltd., added in press release.
For starters, index funds are mutual funds that replicate the underlying index.
Nifty IT has outperformed other sectors in the 3 year horizon. Nifty IT TRI has outperformed Nifty 50 TRI five times out of 10 till 2021. The Compound Annual Growth Rate (CAGR) of Nifty IT is better than Nifty 50 TRI with 13.6 per cent returns and 10.3 per cent returns over 15 years. The percentage return in the latter. Incidentally, the SIP return for the former fund is 22.7 per cent and 12.2 per cent for the latter after five years.