ICICI Prudential Mutual Fund launches Consumption ETF

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Consumption ETF, an open-ended Index Exchange Traded Fund tracking the Nifty India Consumption Index.

The scheme aims to provide returns that closely correspond to the total return of the underlying index, subject to tracking errors. The NFO is open for subscription and will close on October 25.

The scheme will have a persified portfolio of companies representing domestic consumption sectors such as consumer non-durables, healthcare, auto, hotels, etc. The minimum investment required during NFO is Rs 1,000 (plus in multiples of Re. 1/-).

“ICICI Prudential Consumption ETF is the newest addition to our sector/thematic ETF product bouquet. Through this offering an investor gets exposure to 30 large and mid-cap companies that are engaged in goods and services used on a daily basis catering to all age groups,” said Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC.

“With India being one of the fastest-growing economies, there is huge potential for growth across the household and industrial consumption segments. An investor can consider this offering as a part of their equity allocation,” said Haria.

Nifty India Consumption Index is a persified portfolio of companies representing the domestic consumption sector which includes sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc.

Apart from being from the consumption sector, companies that are a part of the index derive more than 50% of their revenue from domestic markets (other than export income). The index is rebalanced semi-annually.