ICICI Prudential Smallcap Index Fund NFO

An open-ended mutual fund 

ICICI Pru Small cap Index Fund invests in small cap companies that are part of NIFTY Small Cap 250 Index. Small cap index has beaten all indices and provided superior returns in the medium to long term.

What is Nifty Small cap 250 Index?

• Nifty Small cap 250 index consists of 250 companies that are ranked from 251-500 from NIFTY 500.

Small cap Universe: Full of Potential 

• GROWTH PROSPECTS
• Small Cap companies tend to have higher growth prospects owing to their smaller size
• DIVERSIFICATION
• Higher weightage to sectors under-represented in Large & Mid Cap segments
• ACCESS TO NEW IPOS
• Index could endeavor to capture newly listed companies ; can be a gateway to access IPOs
• POTENTIAL LEADERS 
• Many specialized businesses, expected to be the leaders of their sector, are part of the index 
• INNOVATIVE
• Start-ups and Unicorns could get included in this space with their listing 
• CONTENDERS FOR MIDCAP
• Many small cap companies grow to be midcaps in the future, delivering impressive growth in the process  

NFO Issue Details

Scheme Opens	12-Oct-21
Scheme Closes	26-Oct-21
NAV of the fund	Rs 10 during NFO period
Benchmark	Nifty Small cap 250 TRI
Minimum Amount for Application in the NFO	Rs. 100/- plus in multiple of Re.1

Asset Allocation 

Type of instruments	Min %	Max %	Risk Profile
Equity and Equity related securities of companies constituting the underlying index (NIFTY Small cap 250 Index)	95%	100%	Medium to High
Money Market instruments including TREPs and Units of debt schemes	0%	5%	Low to Medium
Units of Debt ETFs	0%	5%	Low to Medium

Where will the Scheme invest?

• Equity and equity related securities forming part of underlying index, including warrants carrying the right to obtain equity shares. 
• Derivative instruments like Stock / Index Futures, Stock / Index Options and such other derivative instruments permitted by SEBI. 
• Units of debt schemes/ ETFs, subject to applicable regulations. 
• Money market instruments including TREPs Or similar instruments as may be permitted by SEBI/RBI from time to time.

Why Invest in the ICICI Prudential Small cap Index Fund?

• TRUE REPRESENTATION
• The Nifty Smallcap 250 index captures all the 250 stocks in the smallcap space
• GROWTH POTENTIAL
• Smallcap companies tend to have higher growth rates, which might come at the cost of higher volatility
• NON-DEMAT INVESTORS
• An Index fund facilitates passive investing for investors without a demat account 
• LOW CAPITAL REQUIREMENT
• For a minimum investment amount of INR 100, get exposure to all 250 Smallcap stocks 
• SIP
• Index fund offers the benefits of systematic investment with various frequencies 
• LOW COST
• Index funds by virtue of replicating the underlying index, tends to have costs lower than comparable actively managed funds  

Performance of Small cap 250 Index

• 1 Year Returns – 88%
• 5-year annualized returns – 15%
• Annualized returns since inception – 16%