ICICI Prudential S&P BSE Sensex ETF completes 21 years!

Rs 1 lakh invested in this ETF would be Rs 26 lakhs today; Read to find more

ICICI Prudential Mutual Fund marks a significant milestone with the completion of 21 years for its iconic ICICI Prudential S&P BSE Sensex ETF. Boasting an impressive AUM of Rs. 4,560.71 crores as of December 31, 2023, this veteran scheme has maintained a remarkable tracking error of just 0.04 per cent (1-Year) and boasts a minimal expense ratio of 0.03 per cent.

Navigating the Investment Landscape: Understanding Tracking Error

The tracking error, a mere 0.04 per cent, signifies the scheme's adeptness in mirroring its underlying index. A lower tracking error not only reflects successful replication but also enhances the investment's overall balance.

Chintan Haria Reflects: A Journey of Growth in Indian Equity

Chintan Haria, Principal Investment Strategy at ICICI Prudential AMC, shares insights on the remarkable journey of the ICICI Prudential Sensex ETF. He acknowledges the fund's role in narrating the growth story of the Indian equity market over the past two decades, offering investors a satisfying investment experience.

Strategic Expansion: ICICI Prudential's Diverse ETF Portfolio

Over the years, ICICI Prudential Mutual Fund has diversified its offerings, introducing strategic and tactical investment products spanning various market capitalizations, sectors, asset classes, and smart beta offerings. The fund now proudly manages 29 ETF schemes, each tailored to meet diverse investor needs.

Investor Interest on the Rise: The ETF Phenomenon

Haria notes the increased interest in ETFs, attributing it to the rising number of demat accounts and market participants. Investors, drawn to the idea of exposure to benchmark indices, showcase a growing awareness and comfort with including passive strategies in their portfolios.

Wealth Creation Story: 21 Years of Impressive Returns

A lump sum investment of Rs. 1 lakh in January 2003 has burgeoned to approximately Rs. 26.4 lakhs as of December 31, 2023, yielding a commendable CAGR of 16.9 per cent. While the benchmark S&P BSE SENSEX TRI delivered a CAGR of 17.4 per cent in the same period, the marginal difference is attributed to the tracking error, a testament to the ETF's consistent replication of the underlying index.

Future Outlook: Embracing ETFs in Evolving Financial Trends

Haria predicts a continued trend of investor interest in ETFs, fueled by increasing awareness and a growing comfort level with passive investment strategies. As the financial landscape evolves, ICICI Prudential Sensex ETF stands resilient, ready to meet the diverse needs of investors navigating the complexities of the market.

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