ICICI Pru Nifty Pharma Index Fund(IDCW)
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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
- Growing pharmaceutical sector in India
- Increased healthcare spending
- Government support for pharma
- Diversification through index fund
- Potential for long-term capital gains
- 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.
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10BusinessHighPharma sector has growth potential but faces regulatory challenges.
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10GrowthHighConsistent revenue growth observed in the pharma sector.
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10ProfitabilityHighROE and OCF are stable but not exceptional.
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8ValuationHighValuation metrics are in line with industry averages.
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7BalanceHighDebt levels are manageable, liquidity is adequate.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.