ICICI Prudential Mutual Fund has launched a new fund offer (NFO) for its ICICI Prudential Nifty Oil & Gas ETF. The fund aims to mirror the performance of the Nifty Oil & Gas Index, excluding tracking errors.
Investors can subscribe to the NFO from July 8th to July 18th, 2024, with a minimum investment of Rs 100. The ETF will be managed by Nishit Patel and Priya Sridhar, and it tracks the Nifty Oil & Gas TRI as its benchmark.
The Nifty Oil & Gas Index comprises 15 top oil and gas companies from the Nifty 500, ensuring no single company holds more than 33% weight and the top three combined don’t exceed 62%.
Reliance Industries is the biggest player in the Nifty Oil & Gas index, holding a 34.14% weightage. Other major constituents include ONGC (15.31%), Indian Oil Corp (8.70%), BPCL (8.49%), and GAIL (8.47%).
Chintan Haria, Principal - Investment Strategy at ICICI Prudential AMC, expressed optimism about the sector, stating, "The oil and gas sector is the driving force of modern economic growth, and with growing demand and consumption, it presents a significant investment opportunity."
Historical data indicates that the Nifty Oil & Gas TRI has outperformed the Nifty 500 TRI six times in the past decade and has shown superior performance in many years. The ETF offers investors exposure to various segments of the oil and gas value chain.