ICICI Prudential Mutual Fund has launched ICICI Prudential Nifty Financial Services Ex-Bank ETF, which is an open-ended exchange-traded fund tracking the Nifty Financial Services Ex-Bank Index.
In a statement, ICICI Prudential AMC said that the scheme is designed to reflect the behaviour and performance of the top 30 companies of the Financial Services Sector, except banks, based on free-float market capitalization from the Nifty 500 Index.
Commenting on New Fund Offer (NFO), Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “Financial Services have a huge contribution in Indian economy becoming one of the fastest growing major economies of the world. There is increasing participation from all parts of society in Credit, Investments and Insurance and as a result, the sector is poised to witness an unprecedented boom.”
“We are also in the middle of a digital revolution that has contributed to the growth of financial services companies that are adapting to this change faster. The sector is on the rise and the road thus far has been paved by various reforms, FDI policy relaxation, tax exemptions, etc. which will further encourage the industry to spend on expansion. Investors must take tap into this universe of companies and gain from their growth through ICICI Prudential Nifty Financial Services Ex-Bank ETF,” he added.
New Fund Offer dates
The NFO opened on 16th November 2022 and it will close on November 25, 2022.
The Nifty Financial Services Ex-Bank index has outperformed both the Nifty 50 index and the Nifty Bank index over the last 10 years, the AMC said.
Why should investors consider ICICI Prudential Nifty Financial Services Ex-Bank ETF?
- Nifty Financial Services Ex-Bank Index is relatively less volatile than Nifty Bank Index across all time frames
- The shift of the workforce from agriculture to industry and services is increasing savings and investments
- Cheap cellular data and huge capital spending on telecom infrastructure have enabled credit, insurance and investment penetration in rural India
- The surge in Demat accounts, mutual fund folios and SIP books has increased retail investments in both primary and secondary markets
- The leaders of the sector have recently been listed while some are expected to be listed soon.
(Disclaimer: The above information is based on the statement from ICICI Prudential AMC. Mutual Fund investments are subject to market risks. There is no assurance or guarantee that the scheme’s objectives will be met Please consult your financial advisor before investing)