ICICI Prudential MF launches Nifty financial services ex-Bank ETF

The new fund offer (NFO) will open on 16 November and close on 25 November 2022.

The scheme is designed to reflect the behaviour and performance of top 30 companies of the financial services sector except banks, based on free float market capitalization from Nifty 500 Index.

According to the fund house, Nifty Financial Services Ex-Bank has outperformed both Nifty 50 index and Nifty Bank index over last 10 years, and the index is less volatile than Nifty Bank Index across all time frames.

Chintan Haria, head-product development and 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 an increasing participation from all parts of the society in credit, investments and insurance and as a result the sector is poised to witness an unprecedented boom.

The fund house believes that the shift of workforce from agriculture to industry and services is increasing savings and investments.

Also, cheap cellular data and huge capital spending on telecom infrastructure has enabled credit, insurance and investment penetration in rural India.

ICICI Prudential MF also that the surge in demat accounts, mutual fund folios and the systematic investment plan (SIP) book has increased retail investments in both primary and secondary markets.

“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,“ said Haria.