ICICI Prudential Mutual Fund, an asset management organisation, introduced an open-ended exchange-traded fund (ETF) tracking the Nifty Infrastructure Index on Friday. The infrastructure sector includes companies from the telecom, power, port, air, roads, trains, shipping, and other utility service providers. The underlying index, Nifty Infrastructure Index, is a portfolio of these companies.
The ICICI Prudential Nifty Infrastructure ETF’s new fund offer will be available for subscription through August 8th, 2022. The maximum number of businesses included in the underlying index, introduced on August 7th, 2007, is 30 listed on the National Stock Exchange of India (NSE).
Reliance Industries Ltd., which has the largest weighting in terms of companies, is followed by Larsen & Toubro Ltd., Bharti Airtel Ltd., UltraTech Cement Ltd., Larsen & Toubro Ltd., and Power Grid Corp. of India Ltd. (4.75 per cent).
Performance-wise, the Nifty Infrastructure Total Return Index (TRI) has generated a Compound Annual Growth Return (CAGR) of 10.34% since its inception, while returns over one and five years have been 12.77% and 9.47%, respectively.
According to the fund house, the infrastructure sector is the Indian government’s primary area of interest.
India wants to spend $1.4 trillion on infrastructure between 2019 and 23 to ensure the country’s sustainable growth. According to the AMC, domestic and foreign players are being drawn in by the country’s growing need for infrastructure development. Nishit Patel and Kayzad Eghlim would oversee the plan. During the NFO period, the minimum subscription value would be $1,000; after that, it would be multiples of Re 1. The technique would have zero exit load.