NFO Alert: ICICI Prudential Mutual Fund Launches BSE Liquid Rate ETF

ICICI Prudential Mutual Fund has launched the ICICI Prudential BSE Liquid Rate ETF, an open-ended Exchange-Traded Fund (ETF) that aims to provide returns before expenses in line with the BSE Liquid Rate Index, subject to tracking errors. The ETF is categorised under Debt: Liquid and follows a growth plan.

NFO Details

The New Fund Offer (NFO) details are as follows:

• Issue Opens: March 5, 2025
• Issue Closes: March 10, 2025
• Minimum Investment: ₹1,000
• Lock-in Period: Not applicable
• Exit Load: Nil
• Plan: Growth

Fund Structure 

The ETF is to replicate the performance of the BSE Liquid Rate Index, which tracks short-term money market instruments. The objective is to offer investors returns that correspond closely to the index while managing tracking errors.

• Fund Manager: Darshil Dedhia
• Registrar and Transfer Agent: Computer Age Management Services Ltd.
• Fund House: ICICI Prudential Mutual Fund

Risk and Benchmark

The risk level of the scheme is low, as indicated by its riskometer. Since the ETF invests in short-term debt instruments, it is expected to have minimal volatility. The BSE Liquid Rate Index serves as the benchmark for the fund’s performance.

Liquidity and Trading

As an open-ended ETF, units can be bought and sold on stock exchanges, providing liquidity to investors. There are no exit charges, allowing flexibility in managing investments.

The ETF is available to retail and institutional investors looking for short-term parking of funds with relatively stable returns. It may be used by corporates and investors as an alternative to traditional savings instruments.

Conclusion

Overall, this New Fund Offer provides another debt investment option under the ICICI Prudential Mutual Fund umbrella, offering exposure to short-term liquid instruments while tracking the BSE Liquid Rate Index.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.