ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty Commodities ETF in its ETF category. This open-ended scheme will replicate the Nifty Commodities Index. The fund opened for subscription on December 14, 2022, and will close on December 15, 2022.
Investors may start with a small investment of ₹1,000 only and in multiples of Re 1 thereafter. Details in the Key Information Memorandum highlight this investment has been classified under the “Very High Risk” category.
At least 95 percent of the money would be invested in equities and equity-related instruments, with the remaining being in derivative instruments and money market instruments including TREPs. The scheme would hold all the securities listed in the underlying index in the same proportion as the index. Around 0.5 percent of the fund may be kept liquid to meet its liquidity and expense requirements.
The fund’s working and operations would be managed by Kayzad Eghlim and Nishit Patel.
Who should invest in this scheme?
Those looking to invest for long-term wealth creation and earn returns that closely correspond to the returns provided by Nifty Commodities Index, subject to tracking error. The tracking difference would be disclosed every month on the websites of AMC and AMFI. This also means that the asset management company (AMC) does not promise or guarantee that the investment objective would be achieved.