ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty200 Value 30 ETF

ICICI Prudential Mutual Fund has introduced the ICICI Prudential Nifty200 Value 30 ETF, an open-ended index Exchange-Traded Fund (ETF) that tracks the Nifty200 Value 30 Index. This smart beta product uses a factor-based strategy, designed to provide value-driven investments at a low cost. The New Fund Offer (NFO) opens on September 30, 2024, and will remain open until October 14, 2024.

What is the Nifty200 Value 30 Index?

The Nifty200 Value 30 Index is composed of 30 companies selected from the Nifty 200 Index, based on a proprietary ‘Value Score.’ This score takes into account several valuation metrics, making it an ideal tool for value-conscious investors. The index focuses on companies with strong long-term growth potential, offering a well-rounded exposure to the market.

Why Invest in This ETF?

1. Value-Based Investing
   The ETF follows a value-investing philosophy, targeting undervalued stocks with the potential for future growth. This strategy appeals to long-term investors looking for sustainable growth opportunities.
2. Diversification
   With exposure to 30 companies across various sectors like financial services, energy, metals, and telecommunications, this ETF ensures a diversified portfolio for investors.
3. Low-Cost and Transparent
   The ETF offers a cost-effective way for investors to gain exposure to value stocks, with a low portfolio turnover, ensuring transparency and reduced expenses.

Sector Exposure

The Nifty200 Value 30 Index covers a diverse set of sectors including Financial Services, Oil & Gas, Metals & Mining, Power, Construction Materials, Chemicals, and Telecommunication. This exposure adjusts based on the value score, ensuring the portfolio remains aligned with market conditions and opportunities.

Performance History

Historically, the Nifty200 Value 30 Total Returns Index (TRI) has outperformed the broader Nifty200 TRI six times in the last decade, underscoring the effectiveness of value investing during certain market phases.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.