ICICI Prudential Mutual Fund launches ICICI Prudential FMCG ETF NFO.
ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential FMCG ETF. The New Fund Offer (NFO) opens on July 20, 2021 and closes on August 02, 2021. The offering aims to provide returns that closely correspond to the returns provided by its benchmark Nifty FMCG TRI Index in the same proportions, subject to tracking errors. The fund will be listed on BSE and NSE.
ICICI Prudential FMCG ETF provides investors with a choice to take exposure to multiple facets of the FMCG sector through this product.
Speaking on the launch of the product, Mr Nimesh Shah, MD & CEO, ICICI Prudential AMC said, “ICICI Prudential FMCG ETF provides exposure to a basket of securities in the FMCG sector. Higher inclination towards branded products, rising purchasing power owing to higher disposable income, increased digitization and growing demand from rural areas, are expected to fuel the FMCG sector growth in India. One can say that this sector approximately accounts for more than half of consumer spending.”
FMCG is the 4th largest sector in the Indian Economy. India’s FMCG market was valued at USD 110 billion in 2020. In less than a decade, the market size of the sector had tripled. By 2025, the market is expected to grow to USD 220 billion (Source: www.ibef.org).
The NIFTY FMCG Index is designed to reflect the behaviour and performance of FMCGs (Fast Moving Consumer Goods) which are non-durable, mass consumption products and available off the shelf. The NIFTY FMCG Index comprises 15 stocks from the FMCG sector listed on the National Stock Exchange (NSE). This index has outperformed Nifty 50 index in 8 out of the last 11 calendar years. (Source: MFI Explorer, Data as of June 30, 2021).