NFOs need a good amount of publicity to make the investors aware of the fund and the investment opportunity. The investors have to therefore rely on the reputation of the AMC and other details mentioned in the NFO to make an investment decision. NFOs are offered for the new mutual fund so no proven track record can be reviewed by investors to make an informed investment decision. Some of such points are highlighted below. However, there are several points that need to be considered while subscribing to an NFO. Investing in NFOs is a very good opportunity to maximize the returns as the units can be subscribed at nominal rates and the returns are potentially higher based on the prevailing NAV at the time of redemption. What are the points to consider before investing in NFOs? Head over to the Fisdom App to invest in this NFO. 5,000 and any amount thereafter during NFO SIP – daily, weekly, fortnightly, monthlyQuarterly SIP – Rs. Regular Plan Direct Plan Both plans will have growth and IDCW options. NFO details for ICICI Pru Nifty Bank Index FundĪn open-ended index scheme replicating or tracking the performance and composition of Nifty Bank Index. Source: NFO document Fund details Scheme name This is especially beneficial for new investors who do not want to invest in individual bank stocks due to lack of stock market knowledge.Ĭomparative historical performance of Nifty bank index: In the table below, investors can look at the historical performance of Nifty bank index against other benchmark indexes: Since the fund follows this index, there is a high probability of positive returns for investors.Įasy investment process: Investors can easily invest in this NFO using the Fisdom app by following a seamless KYC process. Nifty Bank index performance: This index has outperformed the Nifty 50 TRI and Nifty 500 TRI in the past 15 years. This can result in higher profits in the hands of investors. Low cost: As this NFO will be passively managed, it will provide investors with the benefit of lower expense ratio as compared to other actively managed funds. ![]() With an investment in this index fund, investors can make the most of the expected growth in the banking sector over the next few years. Rising banking sector: Since India is a young and growing country, there is expected to be a significant rise in the working population over the next few decades, and this will give rise to a need for more banking services. It will primarily invest in stocks that form part of the Nifty Bank Index in the same weight-age as in the index. ![]() The fund will aim to achieve returns commensurate to the above index, subject to tracking errors. ICICI Pru Nifty Bank Index fund NFO’s objective is to invest in companies whose stocks are part of the Nifty Bank Index. The NFO is currently open for subscription and will close on February 24. Some of the top banks that investors can gain exposure to through this fund will be HDFC Bank, ICICI, Kotak Mahindra, Axis bank, SBI, etc. It will provide investors with exposure to 12 of the most liquid and well-capitalized stocks belonging to the banking sector. Being a passive index fund, this open-ended scheme will replicate the Nifty Bank Index. ICICI Prudential Mutual Fund announced the launch of ICICI Pru Nifty Bank Index Fund NFO.
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