ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty LargeMidcap 250 Index Fund
ICICI Prudential Mutual Fund (the Fund) has announced the launch of ICICI Prudential Nifty LargeMidcap 250 Index Fund. The Fund invests in the constituents of the Nifty LargeMidcap 250 Index. This index represents all companies from the Nifty 100 and Nifty Midcap 150 universe. The index is re-balanced on a semi-annual basis and the aggregate weightage of large cap stocks and mid cap stocks is maintained at 50 per cent each. Any reset if required is done on a quarterly basis.
Why invest in ICICI Prudential Nifty LargeMidcap 250 Index Fund?
• Market Cap Exposure: Provides exposure to large and midcap segment of market
• Economic Growth: Historically, Large Midcap index has outperformed Large cap indices during an economic boom.
• Balanced Diversification: It offers better and more balanced diversification as compared to Large cap index and Mid Cap Index individually.
• Low Capital Requirement: For a minimum investment amount of INR 100, an investor gets exposure to all 250 Large and Midcap stocks.
• Size Migration: Aim to participate in the growth story of many of the midcap stocks having potential of becoming large caps.
• Favourable Risk and Return Ratio: Historically, LargeMidcap Index has favorable risk and return ratio as compared to Midcap Index.
• Systematic Features: Opportunity to avail the benefit of Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) etc.
• Non-Demat Holders: Will allow non demat account holders to seek exposure to large and midcap segment of the market.
Speaking on the launch of the index fund, Mr. Chintan Haria, Principal - Investment Strategy, ICICI Prudential AMC said, “The Nifty LargeMidcap 250 Index Fund provides an excellent opportunity to leverage on the stability provided by large caps and the growth potential offered by midcaps at a low cost. The index offers investors a more diverse and balanced sector allocation as compared to large cap and midcap individually. Investors may consider this offering as a part of their equity allocation and use the systematic investment route to achieve their long term goals.”
In terms of performance, historically, Nifty LargeMidcap 250 TRI has offered better return, at lower risk, compared to that of NIFTY 100 TRI and Nifty MidCap 150 TRI. Over the last decade, the index has generated a CAGR of 23.22%. When it comes to calendar year returns, the Nifty LargeMidcap 250 index has outperformed Nifty 100 index 7 times in last 10 years.
Index Portfolio
Data as on 31st January 2024. Source: www.niftyindices.com
SIP Returns of the Index
Data as on 11th February 2024. Source MFIE. Past performance may or may not be sustained in the future. The Total Return Variant of the Index has been used. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme Source. Past performance may or may not be sustained in the future.
