ICICI Prudential Mutual Fund launches Nifty Bank Index Fund

ICICI Prudential Nifty Bank Index Fund is an open-ended index fund imitating the Nifty Bank Index allowing investors to add the largest names in Indian banking to their portfolio.

ICICI Prudential Mutual fund launched the ICICI Prudential Nifty Bank Index Fund allowing investors to add the largest names in Indian banking to their portfolio. The NFO opened on February 10, 2022, and will close on February 24, 2022.

ICICI Prudential Nifty Bank Index Fund is an open-ended index fund imitating the Nifty Bank Index. The objective of the scheme is to invest in companies whose securities are included in Nifty Bank Index and subject to tracking errors, to endeavour to achieve the returns of the benchmark index. This would be done by investing in all the stocks comprising the Nifty Bank Index in the same weightage that they represent in Nifty Bank Index. The scheme provides exposure to the 12 most liquid and well-capitalized stocks from the banking sector. 

Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “The Indian banking sector holds tremendous growth potential given the robust demand in their services, constant innovation in terms of improving operational efficiency along with improving business fundamentals owing to various reforms in this space. Also, banks and financial services form the highest weightage in broader market indices (Nifty 500 and Nifty 50) which emphasizes its importance in contributing to broader market trends.” 

Nifty Bank TRI has outperformed both Nifty 50 TRI and Nifty 500 TRI in 6 out of 10 years:

Following snapshot depicts the top 10 Index constituents: