ICICI Prudential Mutual Fund introduced India’s first Nifty Oil & Gas ETF on July 8, 2024, providing investors a chance to invest in the oil and gas sector. The fund tracks the Nifty Oil & Gas TRI index, offering diversified sector exposure with a minimum investment of ₹100.
The ETF is open-ended and aims to mirror the performance of the Nifty Oil & Gas TRI index, reflecting the activity of leading companies in the sector. This innovative ETF was launched with a New Fund Offer (NFO) closing on July 18, 2024.
Investors can join the fund with no exit load on secondary market sales, though brokerage fees apply. The Nifty Oil & Gas Index, comprising 15 companies, ensures no single entity dominates, with caps on individual and top three company weights.
Historically, the Nifty Oil & Gas Index has consistently outperformed the Nifty 500 TRI, showcasing strong potential returns. The index is updated biannually, ensuring accurate reflection of the sector’s performance and maintaining its robust track record.
Also Read: What is Exchange Traded Funds India?
The ETF is managed by Nishit Patel and Priya Sridhar, both seasoned professionals with extensive backgrounds in finance. Patel is a Chartered Accountant, and Sridhar holds advanced degrees in commerce and financial management, adding a layer of expertise to the fund’s management.
This ETF offers a unique investment avenue into the undervalued oil and gas sector, offering diversified exposure and leveraging historical performance. Managed by seasoned professionals, it is well-positioned to capitalize on sector growth and increasing global interest.
