ICICI
Prudential Nifty Top 15 Equal Weight ETF and ICICI Prudential Nifty Top 15
Equal Weight Index Fund..!
Enable
Access to Top 15 stocks with equal weightage
NFO
Period: June 10, 2025 – June 24, 2025
Highlights:
·
The
offerings will track an index of India’s top 15 large-cap companies
·
Equal-weighted
structure ensures balanced exposure across all constituents, preventing
over-concentration in a few stocks
·
The
underlying index comprises companies from diverse sectors including financials,
automobiles, FMCG, and IT
·
Ideal
for investors seeking a rules-based, relatively lower-cost solution to provide
exposure towards Top 15 stocks
ICICI Prudential
Mutual Fund has announced the launch of ICICI Prudential Nifty Top 15 Equal
Weight ETF and ICICI Prudential Nifty Top 15 Equal Weight Index Fund, offering
investors exposure to a curated list of India’s top 15 companies by free-float
market capitalization, selected from the Nifty 50 universe. The New Fund Offer
(NFO) will open for subscription from June 10 to June 24, 2025.
The schemes aim to
replicate the Nifty Top 15 Equal Weight Index, which assigns equal weight to
each constituent stock and is rebalanced quarterly. The underlying index
includes large cap companies that are often leaders in their respective sectors,
such as financial services, automobiles, FMCG, IT, and telecom. By equally
weighting these 15 stocks, the index ensures diversified participation in
India's growth story, providing balanced exposure across key sectors and
reducing the dominance of any single company or industry.
Why Invest in Nifty
Top 15 Equal Weight?
The Nifty Top 15 Equal
Weight Index offers an equal-weighted portfolio comprising top 15 stocks from
blue-chip stocks. By allocating equal weight to each constituent, the index
ensures balanced exposure across top-performing companies.
It has historically
delivered better long-term returns compared to the Nifty 50 and follows a
disciplined approach with periodic rebalancing to maintain alignment with its
methodology.
How is this index
constructed?
The index follows a
transparent, rules-based methodology by selecting the top 15 stocks based on
their 6-month average free-float market capitalisation. It is rebalanced
quarterly and reconstituted semi-annually to ensure the portfolio remains
aligned with the most prominent market leaders.
The benchmark index,
Nifty Top 15 Equal Weight TRI, when compared to the broader market index like
Nifty 50 TRI, demonstrates how the Index has historically generates better
long-term returns compared to Nifty 50 TRI. This outperformance is a result of
the equal-weighted approach, which provides balanced exposure to all 15
constituents, rather than being skewed toward a few large-cap stocks, thereby enhancing
diversification and potential returns over the long term.
An analysis of the
index’s performance during periods of high market volatility reveals that it
has outperformed the broader Nifty 50 Index. This resilience can be attributed
to its equal-weighted structure, which avoids overdependence on a few large-cap
stocks and ensures more balanced participation across sectors.
Valuations
As of May 29, 2025,
the Nifty Top 15 Equal Weight Index is trading below its three-year average
price-to-earnings (P/E) ratio, indicating relatively attractive valuations and
potentially offering a favourable entry point for long-term investors.
Scheme Details:
· Scheme Names:
ICICI Prudential Nifty Top 15 Equal Weight ETF and ICICI Prudential Nifty Top
15 Equal Weight Index Fund
· NFO Period: June
10 – June 24, 2025
· Benchmark:
Nifty Top 15 Equal Weight TRI
· Fund Managers: Mr.
Nishit Patel and Ms. Ashwini Shinde
· Minimum Application Amount: ₹1,000/- (plus in multiples of Re. 1)
· Plans/Options (For Index Fund): Regular & Direct Plans; Growth & IDCW Options
· Minimum Additional Application Amount for ETF (Post
Allotment): On Stock Exchanges: Investors
can buy/sell units of the Scheme in round lot of 1 unit and in multiples
thereof
Directly
with the Mutual Fund: Authorized Participant(s)/ Investor(s) can buy/sell units
of the Scheme in Creation Unit Size viz. 3,70,000 units and in multiples
thereof
·
Rebalancing &
Reconstitution: Quarterly
rebalancing, semi-annual reconstitution
For
more details & Investments contact..!
Mr. R.
Venkatesh, Founder,
GuruRam Financial Services Pvt. Ltd.
New No. 14, Old No. 37C, First Floor
Nathamuni Street, T Nagar, Chennai -600017
Tel. +91-9677267889, 9677025125
Email: gururamforyou@gmail.com
https://www.gururamfinancialservices.com/index.php
Read articles written by Mr. R.
Venkatesh in Nanayam Vikatan, Aval Vikatan and Vikatan.com a leading
personal finance magazine
https://www.vikatan.com/author/aar-vengktteess
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
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