NFO launch | ICICI Prudential Nifty PSU Bank ETF opens for subscription: Know if it's worth your time and money

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty PSU Bank ETF, an open-ended exchange traded fund tracking Nifty PSU Bank Index. The ETF will reflect the performance of 12 PSU bank companies which form a part of the index. This new fund offer (NFO) will be available for subscription till March 15, 2023.

Speaking on the launch of the product, Chintan Haria, Head – Investment Strategy, ICICI Prudential AMC said, “Over the past decade, PSU banks have undergone a transformation on account of their improving efficiency, customer centric approach, technological superiority and improving risk management frameworks. As a result, since 2018, net NPAs have fallen by over 65 percent while capital adequacy ratio has risen by almost 15 percent. This improvement is reflected in equity market as well, with the Nifty PSU Bank TRI delivering better returns than both Nifty 50 TRI and Nifty Bank TRI over the last few years.”

"In 2022, while there were broad-based gains in the banking pack, it was public sector banks that lead the rally. Investors may consider investing periodically as it enables to accumulate more units during times of market correction. This helps enhance returns when markets head higher due to lower average unit purchase cost," he said.