ICICI Pru Nifty Next 50 Index Fund
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Business Overview
The ICICI Pru Nifty Next 50 Index Fund is a mutual fund that aims to replicate the performance of the Nifty Next 50 Index, which includes the next 50 large-cap companies after the Nifty 50. This fund is ideal for investors looking to diversify their equity portfolio with exposure to emerging market leaders. It matters as it provides a systematic way to invest in high-potential companies, balancing risk and reward effectively.
- Diversified exposure to 50 large-cap companies
- Ideal for long-term wealth creation
- Low expense ratio for cost-effective investing
- Suitable for both new and seasoned investors
- Managed by a trusted financial institution
Investment Thesis
ICICI Pru Nifty Next 50 Index Fund stands out due to its strong promoter backing, robust digital services growth potential, and attractive valuations compared to peers. This fund offers Indian retail investors a compelling opportunity to gain exposure to the next wave of market leaders.
- Strong backing from the reputable ICICI Group enhances credibility.
- Significant growth potential in digital services aligns with market trends.
- Attractive valuation metrics compared to similar funds in the sector.
- Diversified exposure to high-growth mid-cap companies.
- Ideal for long-term investors seeking capital appreciation.
Opportunity vs Risk
- Diversification across 50 growing companies
- Potential for high long-term returns
- Low expense ratio
- Exposure to mid-cap growth
- Tax benefits under ELSS
- Market volatility affecting returns
- Concentration in mid-cap stocks
- Economic downturn impact
- Regulatory changes
- Performance linked to index fluctuations
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10BusinessHighThe fund is invested in a diversified portfolio of companies in the Nifty Next 50, which represents a future-ready sector.
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10GrowthHighThe underlying index has shown consistent revenue and profit growth over the years.
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10ProfitabilityHighThe companies in the index generally exhibit good ROE and ROCE, with healthy cash flows.
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8ValuationHighValuation metrics like P/E and P/B are in line with peers, but some companies are overvalued.
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7BalanceHighThe fund's underlying companies have manageable debt levels and good liquidity.
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6GovernanceGoodPromoter holding is decent, but some concerns about pledging exist.
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6DriversGoodGrowth drivers are present, but execution risks remain due to market volatility.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.