ICICI Pru Nifty EV & New Age Automotive ETF FOF – Direct (G)

ICICI Prudential Nifty EV & New Age Automotive ETF Fund of Funds (FOF) is an open-ended scheme primarily focused on investing in units of the ICICI Prudential Nifty EV & New Age Automotive ETF. The scheme aims to generate returns by investing in the ETF, though there is no assurance or guarantee of achieving the investment objectives.

The scheme will offer units for sale, switch-in, redemption, and switch-out on every business day at NAV-based prices, with redemption proceeds dispatched within 3 business days. Its performance is benchmarked against the Nifty EV & New Age Automotive Total Return Index (TRI). The NAV will be disclosed daily by the AMC, with the first NAV calculated within 5 business days of allotment.

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Details of the NFO: ICICI Pru Nifty EV & New Age Automotive ETF FOF – Direct (G)

Investment Strategy & Objectives 

Objective:

ICICI Pru Nifty EV & New Age Automotive ETF FOF – Direct (G) is a Fund of Funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Nifty EV & New Age AutomotiveETF. There can be no assurance or guarantee that the investment   objectives of the Scheme would be achieved.

What are Investment strategies of ICICI Prudential Nifty EV & New Age AutomotiveETF FOF?

The ICICI Pru Nifty EV & New Age Automotive ETF FOF – Direct (G) would endeavor to provide investment returns linked to the underlying scheme. The Scheme intends to achieve its investment objective by investing in units of underlying scheme -ICICI Prudential Nifty EV & New Age AutomotiveETF and Debt & Money Market Instruments.

The AMC shall endeavor that the returns of the Scheme will replicate the returns generated by underlying scheme. Further, the Scheme shall follow a passive investment strategy. The deviation of returns from the scheme benchmark return may be on account of the tracking error of underlying scheme and expense ratio. The Scheme will invest in the units of underlying scheme directly or through secondary market. The Scheme can also invest in debt securities.

The corpus of the  Scheme  will  be  invested  predominantly in stocks constituting the underlying  index  in  the  same  proportion as in the Index and  endeavor to track the benchmark index. A very small portion (0-5% of the Net Assets) of the fund may be kept liquid to meet the liquidity and expense requirements. Further, the Scheme shall follow a passive investment strategy, The performance of the Scheme may not 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. The Scheme intends to maintain a low tracking error by closely aligning the portfolio in line with the index.

The stocks comprising the underlying index are periodically reviewed by Index Service Provider. A particular stock may be dropped or new securities may be included as a constituent of the index. In such an event, the Scheme will endeavor to reallocate its portfolio but the available investment/ disinvestment opportunities may not permit precise mirroring of the underlying index immediately. Similarly, in the event of a constituent stock being demerged/merged/ delisted from the exchange or due to a major corporate action in a constituent  stock, the Scheme may  have to reallocate the portfolio and seek to minimize the variation from the index. A constituent  stock, the fund may have to reallocate the portfolio and seek to minimize the variation from the index.

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What are the risk associated with ICICI Prudential Nifty EV & New Age AutomotiveETF FOF?

• Investors  may  please  note  that  they  will  be  bearing  the  recurring  expenses  of  the relevant Fund of Funds Scheme in addition to the expenses of the underlying schemes in which the Fund of Funds Scheme makes investment.
• As  the  investors  are  incurring  expenditure  at  both  the  Fund  of  Fund  level  and  the schemes into which the Fund of Fund invests, the returns that they may obtain may be materially impacted or may at times be lower than the returns that investors directly investing in such schemes obtain.
• As the Fund of Fund (FOF) factsheets and disclosures of portfolio will be limited to providing the particulars of the scheme invested at FOF level, investors may not be able to obtain specific details of the investments of the underlying scheme.
• While it would be the endeavour of the Fund Manager of the Fund of Funds scheme to invest in the underlying scheme in a manner, which will seek to maximize returns, the performance of the underlying funds may vary which may lead to the returns of the Fund of Funds being adversely impacted.
• The scheme specific risk factors of the underlying scheme becomes applicable where a Fund of fund invests in any underlying scheme. Investors who intend to invest in Fund of Fund are required to and are deemed to have read and understood the risk factors of the underlying scheme relevant to the Fund of Fund scheme that they invest in. Copies of the Scheme Information Documents pertaining to the various schemes of ICICI Prudential Mutual Fund, which disclose the relevant risk factors, are available at the Customer Service Centers or may be accessed at www.icicipruamc.com.
• A Fund Manager managing the Fund of Fund scheme may also be the Fund Manager for the underlying scheme.
• There exists a possibility that the investment policy and/or fundamental attributes of the underlying scheme change over time. In such circumstances, the fund manager will seek to continue remain invested in such underlying scheme as long as it does not challenge the investment strategy of the Scheme.

ICICI Prudential Nifty EV & New Age AutomotiveETF FOF is suitable for what type of Investor?

1. Long term wealth creation,
2. An  Open-ended  Fund  of Funds  scheme  with  the primary objective to generate returns by investing  in  units  of  ICICI Prudential Nifty  EV & New Age AutomotiveETF.