ICICI Pru Nifty Pharma Index Fund(IDCW)

Ticker: mf17398
Decent 68/100

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Business Overview

ICICI Pru Nifty Pharma Index Fund (IDCW) is a mutual fund that aims to replicate the performance of the Nifty Pharma Index, providing investors with exposure to the Indian pharmaceutical sector. Ideal for those looking to diversify their portfolio with a focus on healthcare, this fund captures the growth potential of leading pharma companies. It offers a systematic approach to investing, making it suitable for both new and seasoned investors seeking long-term gains in a thriving industry.

  • Diversified exposure to top pharmaceutical companies
  • Ideal for long-term wealth creation
  • Low expense ratio compared to actively managed funds
  • Systematic Investment Plan (SIP) options available
  • Managed by experienced professionals
  • Aligned with India's growing healthcare sector

Investment Thesis

ICICI Pru Nifty Pharma Index Fund (IDCW) stands out due to its strong backing from the reputable ICICI Group, ensuring credibility and trust. The fund is positioned to benefit from the robust growth of digital services in the pharma sector, offering a promising growth runway. Additionally, its attractive valuation compared to peers makes it a compelling investment choice for retail investors.

  • Strong promoter group enhances credibility and investor confidence.
  • Significant growth potential in digital services within the pharma sector.
  • Attractive valuation compared to other pharma-focused funds.
  • Diversified exposure to leading pharma companies through the index.
  • Aligned with India's increasing healthcare spending and innovation.

Opportunity vs Risk

Opportunities
  • Growing pharmaceutical sector in India
  • Increased healthcare spending
  • Government support for pharma
  • Diversification through index fund
  • Potential for long-term capital gains
Risks ⚠️
  • Market volatility in pharma stocks
  • Regulatory changes impact
  • Global supply chain disruptions
  • High competition in sector
  • Economic downturn affecting spending

Peer Perspective

ICICI Pru Nifty Pharma Index Fund trades at a slight premium compared to peers like Nippon India Pharma ETF and SBI Nifty Pharma ETF. A sustained improvement in margin stability could trigger a rerating.
📊 Stock Investment Checklist (100 Points)
ICICI Pru Nifty Pharma Index Fund(IDCW) • Updated: 2025-10-01 06:16:45
  • 10
    Business
    High
    Pharma sector has growth potential but faces regulatory challenges.
  • 10
    Growth
    High
    Consistent revenue growth observed in the pharma sector.
  • 10
    Profitability
    High
    ROE and OCF are stable but not exceptional.
  • 8
    Valuation
    High
    Valuation metrics are in line with industry averages.
  • 7
    Balance
    High
    Debt levels are manageable, liquidity is adequate.
  • 6
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks are notable.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The fund is positioned well within the pharma sector, showing decent growth potential but with some risks involved.