ICICI Prudential MF launches ICICI Prudential Nifty Commodities ETF

ICICI Prudential Mutual Fund has launched ICICI Prudential Nifty Commodities ETF, an open-ended ETF replicating the Nifty Commodities Index. The Index is designed to reflect the behaviour and performance of a diversified portfolio of companies representing the commodities segment, including sectors like oil, petroleum products, cement, power, chemical, sugar, metals and mining.

The NFO will close on December 15.

India is among the top producers of several commodities, along with a long history of trading in commodities and related derivatives. The market has made tremendous progress in technology, transparency and trading activity.

“The commodity market has always been one of the most attractive investment asset classes. The demand for commodity inputs, categorized as hard and soft commodities, generally remains high as they fuel the economic growth of the country. Investors looking for commodity exposure in their portfolio can consider ICICI Prudential Nifty Commodities ETF,” said Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC.
According to the press release, the Nifty Commodities Index has grown at 11.93% annually since November 2012. Rs.1 lakh invested in Nifty Commodities Index in 2012 would be worth ~Rs. 3.08 lakhs by end of November 2022. The index includes companies which deal in Oil, Petroleum Products, Cement, Power, Chemicals, Sugar, Metals and Mining. The universe for stock selection is based on the Nifty 500. The index will be rebalanced semiannually on January 31st and July 31st.

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