ICICI Pru NASDAQ 100 Index Fund
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Business Overview
The ICICI Pru NASDAQ 100 Index Fund is a mutual fund that aims to replicate the performance of the NASDAQ 100 Index, which includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange. This fund is ideal for Indian investors looking to gain exposure to global technology and innovation-driven companies. It matters because it offers diversification and potential growth in a rapidly evolving market.
- Access to top global tech companies
- Diversification in investment portfolio
- Potential for long-term capital appreciation
- Managed by a trusted financial institution
- Ideal for systematic investment plans (SIPs)
Investment Thesis
ICICI Pru NASDAQ 100 Index Fund presents a compelling investment opportunity due to its strong backing from the ICICI Group, a credible promoter. With the growing demand for digital services and an attractive valuation compared to peers, this fund is well-positioned for long-term growth in the expanding tech-driven market.
- Strong promoter credibility with the ICICI Group's robust reputation.
- Significant growth potential driven by the digital services sector.
- Attractive valuation compared to similar funds in the market.
- Diversified exposure to top U.S. tech companies through the NASDAQ 100.
- Potential for long-term capital appreciation in a growing economy.
Opportunity vs Risk
- Diversification in US market exposure
- Potential for long-term capital appreciation
- Beneficial for rupee depreciation
- Low expense ratio compared to peers
- Market volatility in US indices
- Currency risk affecting returns
- Economic downturn impacts performance
- Regulatory changes in mutual funds
Peer Perspective
ICICI Pru NASDAQ 100 Index Fund is currently trading at a slight premium compared to peers like Nippon India NASDAQ 100 ETF and SBI NASDAQ 100 ETF. A sustained growth acceleration could trigger a rerating.
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10BusinessHighThe fund is invested in a future-ready sector, focusing on technology and innovation.
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10GrowthHighConsistent revenue and profit growth observed in the underlying index.
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10ProfitabilityHighStrong ROE and OCF relative to net profit, indicating healthy cash flow.
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8ValuationHighValuation metrics are in line with peers, but slightly on the higher side.
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7BalanceHighStrong balance sheet with low debt levels and good liquidity.
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6GovernanceGoodPromoter holding is stable, with no significant pledging.
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5DriversGoodGrowth drivers are present, but execution risks exist due to market volatility.
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5TechnicalsGoodMarket sentiment is mixed, with moderate liquidity.