Highlights:
– Next Generation Growth Focus: The ETF provides broad exposure to Nifty Smallcap 250 Index, subject to tracking error. This index comprises companies ranked 251–500 by market capitalisation within the broader Nifty 500 universe.
– Robust Diversification: The Index provides comprehensive coverage across nearly twenty sectors, including Financial Services, Healthcare, Information Technology, Capital Goods, and Automotive Components.
ICICI Prudential Mutual Fund today announced the launch of the ICICI Prudential Nifty Smallcap 250 ETF, an Exchange Traded Fund that aims to replicate the performance of the Nifty Smallcap 250 Index, subject to tracking error.
The Nifty Smallcap 250 Index represents companies ranked between 251 and 500 by market capitalisation within the Nifty 500 universe. Collectively, these businesses provide investors access to a broad segment of India’s emerging corporate ecosystem.
India’s economic growth story is increasingly being shaped by businesses beyond the traditional large-cap universe. While large companies continue to dominate market indices, a growing number of smaller listed companies are emerging as beneficiaries of trends such as manufacturing expansion, formalisation of the economy, infrastructure development, digitalisation and rising domestic consumption.
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.”
Key Factors Supporting the Nifty Smallcap 250 Index
1. Evolution of Nifty 500 Market Capitalisation (2018 vs 2025) : The Nifty 500 market capitalisation increased nearly 3.1x, from Rs 138 lakh crore to Rs 422 lakh crore between 2018 and 2025. During the same period, the small-cap segment expanded approximately 4.2x, from Rs 12 lakh crore to Rs 50 lakh crore. This indicates the growing depth of the equity market and the rising significance of small-cap companies within the investment universe.
2. Sector Breadth of Nifty Smallcap 250 Index
The breadth of opportunities available within the small-cap segment spans across nearly 20 sectors. The index provides participation in a diverse set of industries ranging from financial services and healthcare to capital goods, chemicals and consumer businesses.
3. Historical Performance
The Nifty Smallcap 250 TRI has historically outperformed the Nifty 500 TRI over the long term.
For example, as of May 31, 2026, the Nifty Smallcap 250 TRI stood at 4,422 points compared to 3,929 points for the Nifty 500 TRI (both indices rebased to 1000 as of April 1, 2016). The Smallcap 250 Index has also experienced greater volatility during market cycles.
4. Valuations
The Nifty Smallcap 250 Index is currently trading close to its 5-year average valuation levels, with:
PE: 33.7x versus 5-year average of 26.3x. PB: 3.6x, broadly in line with its historical average. This suggests valuations remain reasonable relative to the index’s long-term trend.
Why Invest in this ETF?
✔ Exposure to India’s 250 emerging small-cap companies through a single investment
✔ Diversified participation across approximately twenty sectors
✔ Transparent and rules-based portfolio construction
✔ Cost-efficient ETF structure with real-time pricing
Scheme Details
NFO Period: June 9, 2026 – June 16, 2026
Exit Load: Nil
Minimum Application Amount
During NFO: Rs 1,000 and in multiples of Re.1
Ongoing/Continuous Offer:
On stock exchanges, investors can buy/sell units of the scheme in round lots of 1 unit and multiples thereof.
Directly with the Mutual Fund:
Authorised Participants/Investors can buy/sell units in Creation Unit Size of 3,00,000 units and multiples thereof.
Benchmark: Nifty Smallcap 250 TRI