November 9, 2022
mayank
Guidance for NFO of ICICI Prudential Nifty Financial Services Ex-Bank ETF
by Paresh Gordhandas, C.A., Research Analyst.
Nifty financial services index has provided strong returns, however excluding bank stocks, the performance is not quite impressive.
Let’s assess the growth potential of this NFO:
First, we shall discuss the past performance of its benchmark index. We could not obtain data on benchmark index: Nifty Financial Services Ex-Bank TRI. However Nifty financial services index has shown strong performance, we are not sure, if we exclude bank stocks, what will be the performance.
The fund managers are the key person, who can/cannot deliver good results. Mr. Kayzad Eghlim has underperformed in one of his schemes, ICICI Pru. 50 Index fund. In another scheme, Nifty Next 50 Index fund he has underperformed benchmark index. Second fund manager Mr. Nishit Patel has underperformed compared to its benchmark index in ICICI Pru. Regular Gold Savings fund so, we are not sure whether these fund managers can 100% outperform benchmark index while managing this new fund.
Considering both aspects, we are not confident of this NFO and do not recommend the same to our readers.
NFO of ICICI Prudential Nifty Financial Services Ex-Bank ETF
NFO opens on November 16 ,2022
NFO will close on November 25 ,2022
(Our detailed Guidance is given at the bottom of the Page)
Investment Strategy
The scheme seeks to provide returns before expenses that correspond to the total return of the underlying index subject to tracking errors.
Basic Details
| Fund House | ICICI Prudential Mutual Fund |
| Issue Open | 16 November 2022 |
| Issue Close | 25 November 2022 |
| Type | Open-ended |
| Category | Equity: Sectoral-Banking |
| Min. Investment(Rs) | 1,000 |
| Plans | Growth |
| Lock-in Period | NA |
| Exit Load | |
| Riskometer | Very High |
| Benchmark | Nifty Financial Services Ex-Bank TRI |
About Benchmark Index
The Nifty Financial Services Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies. The Nifty Finance Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE).
NIFTY Financial Services Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value.
NIFTY Financial Services Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: NIFTY Financial Services Total Returns Index.
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | 5.89 | 6.97 | -1.35 | 12.61 | 16.76 |
| Total Return | 5.90 | 7.90 | -0.47 | 13.27 | 18.06 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 21.73 | 25.30 | 28.61 |
| Beta (NIFTY 50) | 1.11 | 1.20 | 1.16 |
| Correlation (NIFTY 50) | 0.92 | 0.92 | 0.91 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 19.1 | 3.59 | 0.77 |
Fund Manager
1) Kayzad Eghlim
Education : Mr. Eghlim is a B.Com (H) and M Com.
Experience : Prior to joining ICICI Prudential AMC he has worked with IDFC Investment Advisors Ltd., Prime Securities and Canara Robeco Mutual Fund.
Past Performance of his Schemes
| Fund | ICICI Prudential Nifty 50 Index Fund | It’s Benchmark | ICICI Prudential Nifty Next 50 Index Fund | It’s Benchmark |
| 1 Year | 2.97 | 3.66 | 1.32 | 3.66 |
| 3 Year | 15.48 | 16.88 | 14.44 | 16.88 |
| 5 Year | 12.51 | 12.94 | 7.70 | 12.94 |
| 7 Year | 13.04 | 14.14 | 12.15 | 14.14 |
| 10 Year | 12.79 | 13.97 | 14.40 | 13.97 |
2) Nishit Patel
Education : Mr. Patel is a B.Com & Chartered Accountant
Experience : ICICI Prudential Asset Management Company Limited – ETF Business – November 2018 – January 2020.
Past Performance of his Schemes
| Fund | ICICI Prudential Regular Gold Savings Fund (FOF) | It’s Benchmark | ICICI Prudential BHARAT 22 FOF | It’s Benchmark |
| 1 Year | 6.25 | 6.38 | 22.96 | 3.66 |
| 3 Year | 8.64 | 9.15 | 16.11 | 16.88 |
| 5 Year | 10.29 | 11.49 | — | — |
| 7 Year | 8.76 | 9.65 | — | — |
| 10 Year | 3.72 | 4.96 | — | — |
AMC:
ICICI Prudential Asset Management Company Ltd
Address: One BKC , A Wing , 13th Floor, Bandra Kurla Complex, Mumbai – 400051
Website: http://www.icicipruamc.com
Registrar & Transfer Agent:
Computer Age Management Services Ltd.
Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Website: www.camsonline.com
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