ICICI Prudential MF launches Nifty Financial Services X-Bank ETF

The New Fund Offer (NFO) will open on November 16 and close on November 25, 2022.

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

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

Chintan Haria, Head-Product Development & Strategy, ICICI Prudential AMC said, “Financial services have a huge contribution in the Indian economy becoming one of the fastest growing major economies in the world. Participation is on the rise and as a result the sector is set to witness an unprecedented boom.

The fund house believes that the shift of workforce from agriculture to industry and services is driving up savings and investment.

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

ICICI Prudential MF also said that the boom in demat accounts, mutual fund folios and systematic investment plan (SIP) books has led to a rise in retail investments in both primary and secondary markets.

“We are also in the midst of a digital revolution which has contributed to the growth of financial services companies which are rapidly adopting this change. The sector is growing and thus far has seen various reforms, relaxation in FDI policy, tax exemptions etc., which will encourage the industry to spend on expansion. Investors should tap into this universe of companies and profit from their growth through ICICI Prudential Nifty Financial Services X-Bank ETF Hariya said.