NFO Alert: ICICI Prudential Mutual Fund Launches Nifty Smallcap 250 ETF

ICICI Prudential Mutual Fund has submitted draft scheme documents for the ICICI Prudential Nifty Smallcap 250 ETF, an open-ended exchange traded fund that will track the Nifty Smallcap 250 Index. The New Fund Offer (NFO) is scheduled to open on June 9, 2026, and will close on June 16, 2026. 

According to the draft, the scheme aims to follow the performance of the underlying index, subject to tracking error. The benchmark for the fund will be the Nifty Smallcap 250 Total Return Index (TRI). 

Portfolio Composition 

The draft scheme proposes to invest between 95% and 100% of its assets in equity and equity-related securities forming part of the Nifty Smallcap 250 Index.  

Up to 5% of the portfolio may be invested in money market instruments or debt scheme units for liquidity requirements.  

The document also permits limited use of derivatives for portfolio rebalancing and stock lending within prescribed regulatory limits. 

Investment and Trading Details 

The minimum investment during the NFO has been set at ₹1,000, with additional investments allowed in multiples of ₹1.  

The value of each unit during the NFO will be approximately one-thousandth of the closing value of the Nifty Smallcap 250 Index on the allotment date.  

Once listed, investors can trade the ETF on the stock exchanges in units of one, while direct transactions with the fund are restricted to eligible investors dealing in creation units of 3,00,000 units. 

Listing and Scheme Features 

The ETF is proposed to be listed on both the BSE and the NSE. The draft states that units sold through the secondary market will not attract an exit load.  

The first net asset value (NAV) is proposed to be disclosed within 5 business days of allotment, after which it will be published on every business day. 

Read More: Tata Mutual Fund Announces Restrictions on Gold ETF Subscriptions Effective June 8, 2026, Amid Market Changes! 

Conclusion 

The filing sets out the investment structure and operational framework for the proposed ETF, which seeks to replicate the Nifty Smallcap 250 Index through a passive investment strategy. The scheme will reopen for continuous sale and repurchase after allotment, in line with the conditions mentioned in the draft document. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.