ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty Bank Index Fund, an open-ended index fund replicating the Nifty Bank Index.
The scheme provides exposure to the 12 most liquid and well-capitalised stocks from the banking sector.
The NFO opens on February 10, 2022, and closes on February 24, 2022.
Speaking on the launch of the product, 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.”
The Nifty Bank TRI has outperformed both Nifty 50 TRI and Nifty 500 TRI in 6 out of 10 years. The road thus far has been paved by various reforms which have contributed towards reducing the NPA ratio in recent years.
Going forward, the increase in the working population and growing disposable income too are contributing factors that help improve the demand for banking and related services. Adding to this, by 2025, India’s fintech market is expected to reach Rs. 6.2 trillion (US$ 83.48 billion), states the release. (Source: Source: Ibef.org)
