ICICI Prudential Nifty Next 50 Index Fund is a mutual fund that aims to replicate the performance of the Nifty Next 50 Index, which includes the next 50 companies from the Nifty 100 index that are not part of the Nifty 50.This fund offers investors an opportunity to gain exposure to a diversified portfolio of mid-cap stocks that are poised for growth, with a strategy to track the index as closely as possible.
Key Details about ICICI Prudential Nifty Next 50 Index Fund:
Investment Objective:
- The primary objective of the ICICI Prudential Nifty Next 50 Index Fund is to provide returns that closely correspond to the returns of the Nifty Next 50 Index. It is a passive investment strategy that seeks to mirror the performance of the underlying index without attempting to outperform it.
Index Composition:
- The Nifty Next 50 Index includes 50 mid-cap companies from the Nifty 100 index, selected for their growth potential and stability. These companies span various sectors such as technology, financial services, pharmaceuticals, consumer goods, and more, which offer investors exposure to companies that are expected to perform well in the future.
Benefits:
- Diversification: Investing in the Nifty Next 50 Index Fund provides diversification away from the large-cap stocks found in the Nifty 50, helping to reduce risk in the portfolio.
- Cost Efficiency: As a passive fund, the ICICI Prudential Nifty Next 50 Index Fund typically has a lower expense ratio compared to actively managed funds. This makes it an affordable option for investors seeking broad market exposure.
- Liquidity: It can be bought and sold on the stock exchange like any other mutual fund, making it convenient for investors to manage their holdings.
Performance:
- The performance of the ICICI Prudential Nifty Next 50 Index Fund reflects the overall movement of the Nifty Next 50 Index. It is subject to market conditions and the performance of the underlying stocks in the index.
- This fund provides a stable growth opportunity with a long-term investment perspective.
Tax Implications:
- Similar to other index funds, gains from ICICI Prudential Nifty Next 50 Index Fund are taxed at favorable rates, with long-term capital gains over a specified holding period taxed at a lower rate compared to short-term gains. However, tax implications can vary depending on individual circumstances, so consulting a tax advisor is recommended.
Target Audience:
The ICICI Prudential Nifty Next 50 Index Fund is suitable for investors looking to diversify their portfolios beyond large-cap stocks. It can appeal to those with a mid to long-term investment horizon and a preference for a passive investment approach.
What Is The Share Price Of ICICI Prudential Nifty Next 50 ETF?
As of December 18, 2024, the ICICI Prudential Nifty Next 50 ETF (ticker: NEXT50IETF) is trading on the National Stock Exchange (NSE) of India.
The ETF’s price has experienced fluctuations throughout the day, with a 52-week range between ₹51.51 and ₹81.64.
For the most accurate and up-to-date pricing information, it’s advisable to consult financial platforms such as the NSE India website or financial news outlets.
ICICI Prudential Nifty Next 50 ETF Returns
The ICICI Prudential Nifty Next 50 ETF returns can vary over different time periods due to market conditions and the performance of the underlying Nifty Next 50 Index. Here are some general data points on historical returns for this ETF:
Historical Returns for ICICI Prudential Nifty Next 50 ETF:
1-Year Returns:
- The ETF’s returns over a one-year period can be influenced by short-term market fluctuations. These returns reflect the gains or losses experienced over the past year.
- Example: If the Nifty Next 50 Index rose by 12% over the past year, the ICICI Prudential Nifty Next 50 ETF might show a similar return, but it’s not guaranteed due to tracking error.
3-Year Returns:
- Over a 3-year period, the ETF returns can smooth out some of the short-term volatility and provide a clearer picture of longer-term performance.
- Example: If the Nifty Next 50 Index grew by 10% annually over three years, the ETF returns would likely reflect a similar performance, adjusted for tracking error.
5-Year Returns:
- The 5-year returns can provide a broader view of the ETF’s performance, capturing both bull and bear markets.
- Example: If the Nifty Next 50 Index posted a compound annual growth rate (CAGR) of 8% over five years, the ICICI Prudential Nifty Next 50 ETF’s returns could mirror this trend but with some variations due to tracking efficiency.
Since Inception Returns:
- For ETFs with longer histories, since inception returns offer a comprehensive view of performance since the fund’s launch.
- Example: Since inception, if the Nifty Next 50 Index grew at an average annual rate of 9%, the ICICI Prudential Nifty Next 50 ETF would aim to replicate this return, adjusted for any tracking differences.
Risk-Adjusted Returns:
- Metrics like Sharpe Ratio are used to assess the risk-adjusted returns. The ICICI Prudential Nifty Next 50 ETF, due to its mid-cap focus, might have a higher Sharpe Ratio compared to large-cap funds but will also be subject to higher volatility.
Dividend Returns:
- Some returns come from dividends paid by the companies in the Nifty Next 50 Index. These dividends contribute to the overall return of the ETF, and their amount can vary based on the dividend policies of the underlying companies.
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