The introduction of the ICICI Prudential FMCG ETF has been announced by ICICI Prudential Mutual Fund, one of India's top asset management companies by AUM. The NFO will begin on July 20 and end on August 20, 2021.
The scheme's investment goal is to generate returns before expenses that are as near as possible to the total return of the underlying index, allowing for tracking errors. However, there can be no assurance or guarantee that the Scheme's investment goal will be met.
NIFTY FMCG Sector
The NIFTY FMCG Index will be tracked by the ICICI Prudential FMCG ETF. The Nifty FMCG Index is made up of 15 FMCG stocks that are listed on the National Stock Exchange (NSE). FMCG Market is the 4th Largest Market in India.
The sector is divided into three main segments: food and drinks, which account for 19% of the total, healthcare, which accounts for 31%, and household and personal care, which accounts for the remaining 50%.
Hindustan Unilever, which has the greatest weighting in the index, is followed by ITC and Nestle India as firms that make up this index. As a result, investing in this ETF will provide you with exposure to major companies in India's fourth-largest sector. During the NFO, a minimum investment of Rs 1,000 in multiples of Re 1 is required.
Almost all FMCG brands have now connected with major e-commerce platforms, allowing their items to be delivered directly to consumers' homes.
Details To Know Before Opting
|NFO Period||New Fund Offer Opens on: July 20, 2021|
New Fund Offer Closes on: August 02, 2021
of business hours upto August 02, 2021
Should You Consider?
Invest in ICICI Prudential FMCG ETF aims to benefit from:
- Increasing awareness, spending power, ease of access, and changing lifestyles.
- The increased competition encourages businesses to innovate and introduce new products.
- Increased consumption in rural and urban areas might be a growth factor.
- Low capital required: You can invest as little as Rs.500 in 15 FMCG firms.
Should You Consider?
FMCG sector funds are a form of mutual fund that invests in consumer goods companies. Fast Moving Customer Goods (FMCG) is an abbreviation for a wide range of products that customers use on a regular basis.
The index has only returned 20% in the last year, which is lukewarm when compared to the general market, which has produced tremendous returns. When the dividend portion of this return is factored in, the total return from the index is 23.11 percent. This fund is appropriate for individuals interested in gaining exposure to the FMCG industry.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates.