All You Need To Know About ICICI Prudential Nifty EV & New Age Automotive ETF

ICICI Prudential Mutual Fund has filed a scheme information deed (SID) for the ICICI Prudential Nifty EV & New Age Automotive ETF. This open-ended Exchange-Traded Fund tracks the Nifty EV & New Age Automotive Index. The scheme’s performance would be benchmarked against the Nifty EV & New Age Automotive TRI. Since the scheme is an ETF, the composition of the benchmark is best suited for comparing the scheme’s performance.

Investment Objective

The investment objective of ICICI Prudential Nifty EV & New Age Automotive ETF is to provide returns before expenses that correspond to the total return of the underlying index, subject to tracking errors. However, there can be no assurance or guarantee that the scheme’s investment objective will be achieved. 

Investment Strategies

The corpus of ICICI Prudential Nifty EV & New Age Automotive ETF will be invested in stocks constituting the underlying index in the same proportion as in the Index, and endeavour will be to track the benchmark index. Being an ETF, the Scheme will follow a passive investment strategy. A very small portion (0-5% of the Net Assets) of the scheme may be kept liquid to meet the liquidity and expense requirements. The performance of the Scheme may not be commensurate with the performance of the underlying index on any given day or over any given period. Such variations are commonly referred to as the tracking error.

Investment Allocation

The scheme would primarily invest in the following:

• Equity and equity-related securities forming part of the underlying index. 
• Derivative instruments like Stock / Index Futures, Stock / Index Options and other derivative instruments are permitted by SEBI. 
• To meet the liquidity requirements, money market instruments, which include commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity of up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time, are used. 
• Units of money market/liquid Schemes managed by the AMC provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI Regulations.  

Suitable For Investors

ICICI Prudential Nifty EV & New Age Automotive ETF (the Scheme) is suitable for investors who are seeking

• Long-term wealth creation.
• An Exchange Traded Fund that aims to provide returns that correspond to the returns provided by the Nifty EV & New Age Automotive Index, subject to tracking error.

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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.