ICICI Prudential FMCG ETF: NFO closes on 2 August 2021

ICICI Prudential FMCG ETF is an open-ended exchange traded fund (ETF) which tracks the Nifty FMCG index.

Good to know Exchange-traded Fund (ETF) An ETF is a mutual fund that tracks the performance of sectors, commodities or stock market indices. Unlike other equity schemes, it can be traded on the exchanges just like a stock. ETFs can contain many types of investments, including stocks, commodities and bonds.

Investment objective

As income levels, population and urbanisation continue to rise in India, the consumption of fast-moving consumer goods (FMCG) like toothpaste, biscuits, beverages, shampoo and cooking oil, has grown multi-fold over the last two decades. In fact, the FMCG sector is the fourth largest industry in India today.

With India’s consumption story still intact and expected to continue on its upward trajectory, having exposure to the FMCG sector is important for investors.

ICICI Prudential FMCG ETF provides an opportunity to benefit from India’s strong consumption growth. The fund will track the performance and weightage of Nifty FMCG Index, which includes 15 FMCG companies. These companies manufacture and sell non-durable and mass-consumption products.

Most importantly, the FMCG Index has outperformed the Nifty50 in 8 out of the last 11 years, till 2020. So here’s an opportunity for investors to not just consume but also invest in FMCG products.  

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Asset allocation

Instrument	Allocation (% of total assets)		Risk profile
	Minimum	Maximum
Equity and equity-related securities of companies forming part of FMCG sector	80	100	High
Equity and equity-related securities of companies other than FMCG sector	0	20	Medium to high
Debt and money market instruments	0	20	Low to medium

Scheme details

Name	ICICI Prudential FMCG ETF
Type	An open-ended equity scheme tracking Nifty FMCG Index
Category	Equity Scheme
Benchmark	Nifty FMCG TRI
Entry/exit load	Entry: Nil Exit Load: Nil
Fund Manager	Mr. Kayzad Eghlim Mr. Nishit Patel
Minimum application amount	₹5,000 and in multiples of ₹1.
Expense ratio	Up to 2.25%

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This product is suitable for investors who are seeking*:	Riskometer
Long term wealth creation An open ended equity scheme that primarily invests in companies from FMCG sector.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by ICICI Prudential Asset Management Company. To read the entire document, click here.

Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.