ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty Oil And Gas ETF

NFO opens July 8, 2024 and closes on July 18, 2024

ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty Oil And Gas ETF
ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty Oil And Gas ETF
06 July 2024

Highlights:

  • ICICI Prudential Nifty Oil & Gas ETF (the Scheme) will invest in constituents of Nifty Oil & Gas Index
  • The Nifty Oil & Gas Index represents a diversified portfolio of companies in the oil, gas, and petroleum industry
  • The Scheme offers exposure to companies across the oil and gas value chain, including oil exploration and production, oil storage and transportation, refineries and marketing etc.
  • Relatively low valuation and growing demand and consumption for Oil and Gas provides great opportunities for investment

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty Oil & Gas ETF. The offering aims to provide returns that correspond to the returns provided by the Nifty Oil & Gas Index, subject to tracking errors.

The Nifty Oil & Gas Index features 15 companies from the Oil, Gas & Petroleum Industry. These companies are chosen from the Nifty 500 based on their market value that is freely available for trading. The selection ensures that no single company has more than 33% weight, and the top three companies together do not exceed 62% of the index. This approach ensures a well-balanced and diversified exposure to the sector.

Speaking on the launch of the product, Chintan Haria, Principal - Investment Strategy at ICICI Prudential AMC, said, "ICICI Prudential Nifty Oil & Gas ETF is designed to provide investors with access to a sector that is pivotal to the economy and is currently undervalued. The oil and gas sector is the driving force of modern economic growth, and with growing demand and consumption, it presents a significant investment opportunity. Our ETF aims to allow investors to capitalise on the resurgence in global interest in this sector."

Portfolio Snapshot:

Top 10 constituents by weightage

Weightage (%)

Reliance Industries Ltd.

34.14

Oil & Natural Gas Corporation Ltd.

15.31

Indian Oil Corporation Ltd.

8.70

Bharat Petroleum Corporation Ltd.

8.49

GAIL (India) Ltd.

8.47

Hindustan Petroleum Corporation Ltd.

4.55

Oil India Ltd.

3.70

Petronet LNG Ltd.

3.55

Adani Total Gas Ltd.

3.53

Indraprastha Gas Ltd.

2.52

Source: Nifty Oil & Gas Factsheet. As of June 28, 2024. https://www.niftyindices.com/Factsheet/Factsheet_nifty_oil_and_gas.pdf. The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s).

Performance of the Index: Calendar Year Returns (%)

Nifty Oil & Gas TRI has Outperformed the Nifty 500 TRI six times in the last 10 years. On a YTD basis (as on 20-Jun-2024) also the index has been outperforming the Nifty 500 TRI.

Performance of the Index

Data as on June 20, 2024. Data Source: Nifty Indices https://www.niftyindices.com/indices/equity/sectoral-indices/ MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. CAGR stands for The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span

The Nifty Oil & Gas Index is updated twice a year to reflect the sector's performance accurately and has outperformed broader market indices broader market indices in many years, as shown in above graph, demonstrating its potential for delivering superior returns.

Why invest in ICICI Prudential Nifty Oil & Gas ETF?

  • Provides exposure to companies within the oil and gas sector
  • Enables diversification across different segments of the oil and gas value chain
  • Historically, the Nifty Oil & Gas Index has had a strong performance with a favourable valuation compared to broader market indices

The NFO period is from July 8, 2024, to July 18, 2024. The minimum application amount during the NFO is Rs. 100 (plus in multiple of Re. 1).

This ETF's benchmark is the Nifty Oil & Gas TRI, and Nishit Patel and Priya Sridhar shall manage the Scheme.

For more information, please contact:

Adil Bakhshi

Principal PR & Corporate Communication

Email: adil_bakhshi@icicipruamc.com

Phone: 91-22-66470274

Riskometer & Disclaimers:

Riskometer

#It may be noted that the scheme risk-o-meter specified above is based on the internal assessment of the scheme characteristics and may vary post NFO when the actual investments are made. The same shall be updated on ongoing basis in accordance with paragraph 17.4 of the Master Circular

ICICI ETF is part of ICICI Prudential Mutual Fund and is used for exchange traded funds managed by ICICI Prudential Asset Management Company Limited

Disclaimer by the National Stock Exchange of India Limited: It is to be distinctly understood that the permission given by National Stock Exchange of India Limited (should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’

Disclaimer by the BSE Limited: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID The investors are advised to refer to the SID for the full text of the Disclaimer Clause of the BSE Limited

Disclaimer of NSE Indices Limited : The Products offered by “ICICI Prudential Mutual Fund/ICICI Prudential Asset Management Company Limited” or its affiliates is not sponsored, endorsed, sold or promoted by NSE Indices Limited (NSE Indices) and its affiliates NSE Indices and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of these Products or any member of the public regarding the advisability of investing in securities generally or in the Products linked to their underlying indices to track general stock market performance in India Please read the full Disclaimers in relation to the underlying indices in the respective Scheme Information Document

Disclaimer

All figures and other data given in this document are dated as of June 30, 2024 unless stated otherwise The same may or may not be relevant at a future date The information shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management Company Limited (the AMC) Prospective investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund

Disclaimer

In the preparation of the material contained in this document, the AMC has used information that is publicly avail able, including information developed in house Some of the material(s) used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates Information gathered and material used in this document is believed to be from reliable sources The AMC however does not warrant the accuracy, reasonableness and or completeness of any information We have included statements opinions recommendations in this document, which contain words, or phrases such as “ will”,“ expect”,“ should”,“ and similar expressions or variations of such expressions, that are “forward looking statements” Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner Further, the information contained herein should not be construed as forecast or promise The recipient alone shall be fully responsible/are liable for any decision taken on this material

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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