NFO Update: ICICI Prudential Mutual Fund launches Nifty Private Bank Index Fund

ICICI Prudential Mutual Fund announces the launch of ICICI Prudential Nifty Private Bank Index Fund, an open-ended index scheme replicating Nifty Private Bank Index.

This scheme offers investors an opportunity to invest in a basket of India’s private banks, which have delivered fundamentals and supported India’s economic expansion, according to the fund house.

The new fund offer or NFO of the fund is open for subscription and will close on July 14.

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The investment strategy of the fund is to replicate the Nifty Private Bank TRI with a passive approach.

“Through this product, we offer investors a unique opportunity to access the strength of India’s private banking sector in a simple, cost-effective manner. These banks have demonstrated high profitability, robust asset quality, and capital adequacy, making them a potential long-term investment,” said Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC.

Private banks have shown growth in their share of the Indian credit and deposit markets over the past two decades. Loan market share rose from 13% in FY2005 to 36% in FY2025, and deposit market share improved from 11% to 32% over the same period, according to a press release.

According to the fund house, why should one invest in this scheme is because it invests in India’s top private banks, one of the drivers of the economy, portfolio construction mirrors the Nifty Private Bank Index methodology, Passive structure offers an efficient way to gain exposure, minimum investment of Rs 1,000, with systematic investment options like SIPs and STPs available, and will allow non demat account holders to seek exposure to private bank segment of the market.

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The exit load is nil. The minimum amount for daily, weekly, fortnightly, and monthly SIP is Rs 1,000 (plus in multiple of Re 1) with minimum six installments. For quarterly SIP: Rs 1,000 (plus in multiple of Re 1) with minimum four installments.

The performance of the fund is benchmarked against Nifty Private Bank TRI and will be managed by Nishit Patel and Ashwini Shinde.

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