ICICI Prudential Mutual Fund launches ICICI Prudential Nifty Oil and Gas ETF
NFO opens July 8, 2024 and closes on July 18, 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
Mumbai, July 5, 2024: 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.
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.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
