ICICI Prudential Mutual Fund has introduced the ICICI Prudential Nifty EV & New Age Automotive ETF on March 21, 2025.
This is an open-ended exchange-traded fund (ETF) that tracks the Nifty EV & New Age Automotive Index.
The New Fund Offer (NFO) is now open for subscription from March 21 to April 2, 2025. Investors can participate during this period to invest in the fund.
Minimum Investment and Lock-in Period
The minimum investment required in this NFO is ₹1,000, and after that, investors can invest in multiples of ₹1.
This scheme has no lock-in period, meaning investors can withdraw their money anytime. The fund’s benchmark is the Nifty EV & New Age Automotive Index.
Exit Load and Redemption Rules
No Exit Load: Investors will not have to pay any exit load when selling units in the secondary market (BSE/NSE). However, brokerage charges may apply.
Redemption Rules: Investors eligible for direct redemption with the fund (AMC) can do so in creation unit size. While there is no exit load on these transactions, certain transaction costs and incidental expenses (part of the cash component) may apply.
Where Will the Fund Invest?
According to ICICI Prudential, the fund will allocate:
95% to 100% of its assets in equity and related securities of companies listed in the Nifty EV & New Age Automotive Index.
0% to 5% in money market instruments, including Tri-party Repos (TREPs).
Investment Strategy
This fund will follow a passive investment strategy to match the performance of its benchmark index. The investments will be made in stocks in the same proportion as the index. A small portion (0-5%) of the total assets will be held in cash for liquidity and expenses.
Who Should Invest?
This fund is ideal for long-term investors looking to benefit from the growth of Electric Vehicles (EVs). However, it falls under the Very High-Risk category on the riskometer.
The fund will be managed by Ashwini Shinde and Nishit Patel.
