ICICI Prudential Smallcap Index Fund is an open-ended scheme replicating the Nifty Smallcap 250 Index.
| Good to know What is an index fund? |
Investment objective
The scheme will replicate the Nifty Smallcap 250 Index, providing investors with exposure to smallcap companies that tend to have higher growth prospects due to their small size. Smallcaps offer impressive returns with higher volatility compared to large and midcap stocks. But this volatility can be mitigated through systematic investments over the long term. For instance, out of the last ten years, the Nifty Smallcap 250 Index has outperformed the benchmark Nifty50 Index five times.
Besides the strong growth prospects, the Nifty 250 Smallcap Index could provide indirect access to newly listed companies in the smallcap space. Also, these specialised businesses in the index have the potential to become leaders of their respective sectors. In fact, many smallcaps grow and enter the midcap universe, thereby delivering handsome returns to investors in the future.
The fund is low cost and requires low capital for investing.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Equity and equity related securities of companies constituting the underlying index (Nifty Smallcap 250 Index) | 95 | 100 | Medium to High |
| Money Market instruments including TREPs, units of debt schemes | 0 | 5 | Low to medium |
| Units of debt ETF | 0 | 5 | Low to medium |
Scheme details
| Name | ICICI Prudential Smallcap Index fund |
| Type | An open ended index fund replicating the Nifty Smallcap 250 Index |
| Category | Equity-Index fund |
| Benchmark | Nifty Smallcap 250 Index |
| Entry/exit load | Entry: Nil Exit Load: Nil |
| Fund Manager | Kayzad Eghlim and Nishit Patel |
| Minimum application amount | ₹100 and in multiples of ₹1. |
| Expense ratio | Up to 1% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| -Long term wealth creation -An index fund that seeks to track returns by investing in a basket of Nifty Smallcap 250 Index and aims to achieve returns of the stated index, subject to tracking error |
*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.