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The new fund offering (NFO) of ICICI Prudential Nifty Private Bank Index Fund, an open-ended index scheme that aims to replicate the performance of the Nifty Private Bank Index, opened on today, July 1 and conclude on until July 14, 2025.

The newly launched fund offers investors an opportunity to gain exposure to a diversified basket of India’s leading private sector banks.

What is objective of launching fund?

The fund seeks to mirror the returns of the Nifty Private Bank Total Return Index (TRI) by investing in its underlying constituents. It follows a passive investment strategy, aiming to closely replicate index performance with minimal tracking error.

According to Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC, "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."

Over the past two decades, private sector banks have steadily increased their share in both credit and deposit markets:

The banks have also shown strong financial performance as follows:

The Nifty Private Bank Index comprises the top 10 private sector banks from the Nifty 500, selected based on free-float market capitalisation. Each stock in the index is capped at the lower of 23 per cent, or 62 per cent combined for the top three constituents, during the semi-annual rebalancing.

The fund will follow a pure indexing strategy, with no active stock selection.

Here are key details of Nifty Private Bank Index Fund NFO:

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)

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