ICICI Prudential Nifty IT Index Fund NFO Is Open For Investment: Key Details

ICICI Prudential Nifty IT Index Fund NFO opened for subscription on July 28 and closes on August 11, 2022. This is an open ended index scheme mirroring the Nifty IT index and invests in a set of stocks constituting the Nifty IT index. On the new NFO launch, the AMC said the fund targets to realise returns mirroring the Nifty IT index, subject to tracking error. Notably during the NFO period, the minimum application amount is Rs. 1000.

ICICI Prudential Nifty IT Index Fund NFO Is Open For Investment: Key Details

How does ICICI Prudential Nifty IT index fund works?

The fund works by capturing the performance of the IT companies. The Nifty IT index consists of 20 companies listed on the NSE. The selection of these 20 companies is done using the free-float market capitalisation method. The scheme shall work to offer you return provided by Nifty IT index i.e. by investing in securities of companies that are engaged in the IT sector.

How can investors benefit from the Nifty IT index fund by ICICI Prudential AMC?

The investors in the fund may benefit by taking exposure in companies investing in futuristic technology. Also, one may get a chance to deploy one's capital in companies with quality management and a global presence.

Further the AMC has placed its view that after any crisis be it the sub-prime crisis of 2008 or the latest 2020 Covid pandemic, IT sector has emerged stronger. Also, IT sector gains substantially on rupee depreciation as a large chunk of its revenues are earned from exports of its services in the US markets.

"The growth of IT industry looks inevitable. India's digital economy is estimated to touch USD 1 Trillion by 2025 and several disruptive technologies such as cloud computing, artificial intelligence, and blockchain are offering new windows of opportunity. Investors can tap into the long-term potential of the IT sector by investing in Nifty IT Index Fund and become a part of digital transformation", Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said on the NFO.

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