ICICI Pru BSE Sensex Index Fund(IDCW-Payout)
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Business Overview
ICICI Pru BSE Sensex Index Fund (IDCW-Payout) is a mutual fund designed for investors seeking exposure to India's top companies represented in the BSE Sensex. This fund is ideal for those looking for a passive investment strategy that tracks the performance of the Sensex, offering a diversified portfolio with lower risk. It matters because it provides a simple way to invest in the Indian equity market, making it accessible for both new and seasoned investors.
- Tracks the BSE Sensex for passive investment
- Ideal for long-term wealth creation
- Diversified exposure to top Indian companies
- Low expense ratio compared to actively managed funds
- Suitable for both new and experienced investors
Investment Thesis
ICICI Pru BSE Sensex Index Fund offers a compelling investment opportunity backed by a reputable promoter group. With a robust growth trajectory in digital services and attractive valuations compared to peers, this fund is well-positioned to deliver consistent returns, making it a valuable addition to any retail investor's portfolio.
- Strong backing from the credible ICICI Group enhances trust and stability.
- Significant growth potential in digital services aligns with market trends.
- Attractive valuation metrics compared to peer index funds.
- Diversified exposure to top-performing companies in the BSE Sensex.
- Consistent track record of performance and risk management.
Opportunity vs Risk
- Strong historical performance
- Diversification in equity investments
- Potential for long-term capital growth
- Low expense ratio
- Tax benefits on long-term gains
- Market volatility impacts returns
- Regulatory changes in mutual funds
- Economic downturns affect performance
- Liquidity risks in market downturns
- Management fees reduce overall gains
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10BusinessHighThe fund is invested in a diversified portfolio of large-cap stocks, which are generally considered future-ready.
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10GrowthHighThe fund has shown consistent revenue and profit growth aligned with the underlying index.
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10ProfitabilityHighROE and ROCE are in line with industry averages, but cash flow is slightly lower than net profit.
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10ValuationHighValuation metrics like P/E and P/B are competitive compared to peers.
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8BalanceHighThe fund maintains a healthy balance sheet with low debt levels.
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7GovernanceHighPromoter holding is stable, with no significant pledging reported.
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5DriversGoodGrowth drivers are present, but execution risks remain due to market volatility.
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3TechnicalsLowMarket sentiment is cautious, with moderate liquidity.