ICICI Prudential AMC has initiated a new fund offer (NFO) of the ICICI Prudential Liquid ETF today (10th September 2018). The NFO of this new open-ended exchange traded fund (ETF) will close on 24th September and subsequently this scheme will be listed on exchanges. Being an opened ended ETF, the scheme will allow you to make intraday trades on days when markets are open. A demat account is mandatory for investing in the scheme.
ICICI Prudential Liquid ETF will be benchmarked against the S&P BSE Liquid Rate Index. This index is designed to measure the returns from a daily rolling deposit at the CBLO (Collateralized Borrowing and Lending Obligation) rate. This is a relatively new index with 1 year returns recorded at 6.01% as of 31st August 2018, therefore the longer term returns might follow a different trend.
This new ETF from ICICI Prudential will invest between 95% and 100% of its assets in CBLOs. The remainder of assets (up to 5%) will be invested in various liquid fund units and money market instruments with maturity of 91 days or less. Moreover, the ICICI Prudential Liquid ETF will not invest in securitized debt, derivatives and foreign securities.
This new ETF will be managed by Rohan Maru who currently manages other ICICI Pru MF debt schemes including ICICI Prudential Corporate Bond Fund, ICICI Prudential Liquid Fund and ICICI Prudential Savings Fund. Among these, the ICICI Prudential Liquid Fund and ICICI Prudential Savings Fund are among the most popular schemes from the AMC (Asset Management Company) featuring AUM of Rs. 46,996 crores and Rs. 18,235 crores (as on 31st August 2018). One must however note that these schemes are actively managed whereas the ICICI Prudential Liquid ETF will be passively managed. Hence the fund manager’s ability to influence returns will be limited in case of the new liquid ETF.
Additional information about the ICICI Prudential Liquid ETF NFO:
| NFO Period | 10th September – 24th September 2018 |
| Minimum Investment | Rs. 5000 |
| Benchmark | S&P BSE Liquid Rate Index |
| Fund Manager | Rohan Maru |
Other Funds by ICICI Prudential Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| ICICI Prudential US Bluechip Equity Fund | 17.56 | 155.44 | Sectoral/Thematic Fund |
| ICICI Prudential Technology Fund | 16.88 | 366.24 | Sectoral/Thematic Fund |
| ICICI Prudential FMCG Direct Plan | 12.83 | 389.29 | Sectoral/Thematic Fund |
| ICICI Prudential Banking and Financial Services Fund | 12.82 | 2703.9 | Sectoral/Thematic Fund |
| ICICI Prudential Nifty Index Fund | 11.59 | 327.6 | Large Cap Fund |
| ICICI Prudential Asset Allocator Fund (FOF) | 10.5 | 5.74 | Balanced Hybrid Fund |
| ICICI Prudential Bluechip Fund | 10.45 | 17141.91 | Large Cap Fund |
| ICICI Prudential Constant Maturity Gilt Fund | 10.08 | 26.27 | Gilt Fund with 10 year constant duration |
| ICICI Prudential Balanced Advantage Fund | 10.06 | 27123.16 | Dynamic Asset Allocation or Balanced Advantage |
| ICICI Prudential Long Term Bond Fund | 9.89 | 1223.84 | Long Duration Fund |
| ICICI Prudential Global Stable Equity Fund (FOF) | 9.81 | 90.62 | Sectoral/Thematic Fund |
| ICICI Prudential Regular Savings Fund | 9.62 | 1355.69 | Conservative Hybrid Fund |
| ICICI Prudential Regular Gold Savings (FOF) | 9.49 | 44.61 | Gold Funds |
| ICICI Prudential Long Term Equity Fund (Tax Saving) | 9.18 | 5299.48 | ELSS |
| ICICI Prudential All Seasons Bond Fund | 9.09 | 2286.07 | Dynamic Bond Fund |
| ICICI Prudential Gilt Fund | 8.96 | 743.86 | Gilt Fund |
| ICICI Prudential Credit Risk Fund | 8.88 | 10408.93 | Credit Risk Fund |
| ICICI Prudential Child Care Gift Fund | 8.88 | 477.69 | Aggressive Hybrid Fund |
| ICICI Prudential Multicap Fund | 8.52 | 2856.06 | Multi Cap Fund |
| ICICI Prudential Short Term Fund | 8.47 | 9123.29 | Short Duration Fund |
{Data as on Feb 19, 2020; Source: Value Research}