ICICI Prudential Mutual Fund Launches Nifty Smallcap 250 ETF; Check NFO Dates And Key Features

ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty Smallcap 250 ETF, a new exchange-traded fund that will invest in the stocks included in the Nifty Smallcap 250 Index. The New Fund Offer (NFO) opened on June 9, 2026, and will remain open for subscription until June 16, 2026.

ETF To Track Nifty Smallcap 250 Index

The Nifty Smallcap 250 Index comprises companies ranked between 251 and 500 by market capitalisation within the broader Nifty 500 universe. The ETF is designed to provide investors with exposure to a diversified basket of emerging companies through a passive investment structure.

According to the fund house, the index provides exposure to businesses that are benefiting from trends such as manufacturing expansion, formalisation of the economy, infrastructure development, digitalisation and rising domestic consumption.

Small-Cap Segment Expands Faster Than Broader Market

ICICI Prudential Mutual Fund highlighted that the market capitalisation of the Nifty 500 increased nearly 3.1 times from Rs 138 lakh crore in 2018 to Rs 422 lakh crore in 2025.

During the same period, the small-cap segment expanded approximately 4.2 times from Rs 12 lakh crore to Rs 50 lakh crore, reflecting the increasing significance of small-cap companies within India's equity market.

Diversification Across Nearly 20 Sectors

The Nifty Smallcap 250 Index offers exposure across nearly 20 sectors, including Financial Services, Healthcare, Information Technology, Capital Goods, Chemicals, Consumer Services and Automotive Components.

The fund house stated that the broad sector representation allows investors to participate in multiple growth segments of the economy through a single investment vehicle.

Historical Performance And Valuation

As of May 31, 2026, the Nifty Smallcap 250 Total Return Index (TRI) stood at 4,422 points compared with 3,929 points for the Nifty 500 TRI, with both indices rebased to 1,000 as of April 1, 2016. The fund house noted that the Smallcap 250 TRI has historically outperformed the Nifty 500 TRI over the long term, although it has also experienced higher volatility during market cycles.

The Nifty Smallcap 250 Index is currently trading at a price-to-earnings (PE) ratio of 33.7 times compared with its five-year average of 26.3 times. The price-to-book (PB) ratio stands at 3.6 times, broadly in line with its historical average.

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Management Commentary

Commenting on the launch, Abhijit Shah, Chief Marketing & Digital Business Officer, ICICI Prudential AMC, said: "India's growth journey is creating opportunities across a wider universe of companies than ever before. ICICI Prudential Nifty Smallcap 250 ETF offers access to a diversified basket of emerging businesses through a transparent and cost-efficient passive structure. The ETF is designed for investors seeking long-term participation in India's expanding smallcap opportunity set while benefiting from broad diversification across sectors and companies."

ICICI Prudential Nifty Smallcap 250 ETF Scheme Details

The New Fund Offer (NFO) is open for subscription from June 9, 2026, to June 16, 2026. The scheme carries no exit load, and investors can participate with a minimum investment of Rs 1,000 during the NFO period, with additional investments allowed in multiples of Re 1 thereafter.

The scheme's benchmark will be the Nifty Smallcap 250 TRI, and it will be managed by Nishit Patel, Ashwini Bharucha and Venus Ahuja.

About ICICI Prudential Nifty Smallcap 250 ETF

The ICICI Prudential Nifty Smallcap 250 ETF is an open-ended exchange-traded fund that seeks to provide returns corresponding to the Nifty Smallcap 250 Index, subject to tracking error. The ETF offers a rules-based and diversified approach to investing in India's emerging small-cap universe.

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Disclaimer: The article is for informational purposes only and not investment advice.