ICICI Prudential Nifty IT ETF
Discover the benefits of investing in ICICI Prudential Nifty IT ETF, an open-ended index exchange-traded fund tracking the Nifty IT Index. Explore the growth of ETFs in India and the future of the IT sector.
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ICICI Prudential Nifty IT ETF (An open-ended Index Exchange Traded Fund tracking Nifty IT Index)
What is an ETF? ETFs are generally passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. The common types of ETFs are as under Equity ETFs Debt ETFs Commodity ETFs Like a stock Like an index fund Tracks an index Open ended mutual fund scheme Lower expense ratio compared to actively managed schemes Lower turnover and higher transparency as compared to actively managed schemes Intraday trading on the exchange Real time prices Put limit orders Minimum trading lot - 1 unit on the exchange Mandatory delivery into your Demat account
What are the benefits offered by ETFs? Trading at real time NAV during market hours Provides diversification benefits Transparency in holdings and price Index is based on research and back tested data Adequate liquidity with AMC and on stock exchange Periodic portfolio rebalancing The above list is not exhaustive
Growth of ETFs in India Indian ETF industry has seen rapid growth in last 4 years. Recent investments in ETFs: EPFO s apex decision making body is considering to increase investments in equity ETFs to 15% of the investible deposits. The major contribution ETF AUM is by EPFO. 700000 AUM in Rs. Crores 600000 500000 400000 300000 200000 100000 0 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Data as on August 31, 2023. Data Source: MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. EPFO: Employee Provident Fund Organisation.
Technology Growth is Inevitable SOCIALISING EDUCATION COMMUNICATION BANKING ENTERTAINMENT BUSINESS SHOPPING TRAVELLING MEDICAL AID There s no turning back from technology now. Our dependence on IT for basic necessities of life is constantly growing and ever lasting. The above list is not exhaustive
Future Of IT Global IT industry is racing towards the $5.2 Trillion mark IT Industry in India is expected to contribute 10% to the GDP by 2025 India s digital economy is estimated to touch $1 Trillion by 2025 Indian software industry is forecasted to cross the $100 Billion mark by 2025 Disruptive technologies such as cloud computing & data analytics are offering new windows of opportunities India being inexpensive compared to US is an attractive market for the IT sector Map not to scale. This map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India. Source : www.ibef.org ; Data is as of 31st August, 2023
Emerging Disruptive Technologies Augmented Reality Internet of Things Artificial Intelligence Cloud Computing Edge Computing Blockchain Machine Learning Robotics
Factors influencing the IT Sector Competition & competitive advantages of peers Customer Behaviour Patterns Labour cost and availability of skilled workforce Financial or Natural disasters FACTORS Innovation and infrastructure Government regulations & stimulations Marketing efficiency The above factors are not exhaustive. They may change pertaining to market conditions
TO BE A PART OF THE DIGITAL TRANSFORMATION WITHOUT HAVING TO DECODE THE COMPLEXITIES IN THE IT SECTOR ALL BY YOURSELF, OPT TO INVEST IN ICICI PRUDENTIAL NIFTY IT ETF Map not to scale. This map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
Sectoral Leadership change Nifty 50 Index Constituents Top 5 Sectors Now 2010 Sector Weightage Sector Weightage FINANCIAL SERVICES 26.2% FINANCIAL SERVICES 37.00% OIL & GAS 15.5% IT 13.66% IT 13.2% OIL & GAS 11.35% CONSTRUCTION 7.5% FMCG 9.30% CONSUMER GOODS 6.9% AUTOMOBILE 6.05% Data as of August 31, 2023. Source: NSE. The stock(s)/sector(s) mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in this stock(s)/sector(s). https://www.niftyindices.com/Factsheet/ind_nifty50.pdf
Sector-wise Performance (%) IT TRI OUTPERFORMED THE OTHER SECTORS OVER BOTH 5 AND 7 YEAR HORIZON 25.0 19.0 17.6 17.3 20.0 16.8 15.8 15.6 14.9 14.1 14.1 13.2 13.0 12.8 12.6 15.0 12.1 11.8 11.5 11.0 9.9 8.6 8.6 8.0 10.0 4.7 5.0 0.0 -5.0 -2.9 -3.4 5 Years 7 Years Data as on August 31, 2023. Data source: MFI Explorer. Past performance may or may not be sustained in the future. The Total Return Variant of the Index has been used. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html; The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s). The asset allocation and investment strategy will be as per SID.
Nifty IT Index INDEX CONSTITUENTS(%) UNIVERSE NIFTY 500 Index Infosys Ltd. 27.8 NO. OF CONSTITUENTS 10 Tata Consultancy Services Ltd. 24.8 PERIODIC CAPPED FREE FLOAT Tech Mahindra Ltd. 9.6 METHODOLOGY Wipro Ltd. 9.1 HCL Technologies Ltd. 8.9 REBALANCING SEMI-ANNUAL LTIMindtree Ltd. 7.2 Persistent Systems Ltd. 4.2 Date P/E P/B Div Yield Coforge Ltd 3.5 MphasiS Ltd. 3.0 26.21 8.58 2.56 Nifty IT Index L&T Technology Services Ltd. 1.8 21.97 4.4 1.38 Nifty 50 Index 0 5 10 15 20 25 30 Above index constituents and statistics are as of August 31, 2023. Data source: https://www.niftyindices.com/Factsheet/ind_nifty_it.pdf The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s).
Calendar Year Returns (%) Nifty IT TRI Nifty 50 TRI 2014 20.1 32.9 2015 1.5 -3.0 Nifty IT TRI has outperformed the Nifty 50 TRI 5 out of 10 times in last 10 years 2016 -5.3 4.4 2017 14.6 30.3 2018 26.0 4.6 2019 11.0 13.5 2020 57.9 16.1 2021 62.3 25.6 2022 -24.5 5.7 2023 (YTD) 10.1 7.3 Data as on August 31, 2023. Data source: MFI Explorer. Past performance may or may not be sustained in the future. The Total Return Variant of the Index has been used. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme. YTD :Year to Date MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html
Performance(%) 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years YTD Nifty IT TRI 11.6 -3.2 22.5 16.8 19.0 16.2 10.1 Nifty 50 TRI 9.5 7.3 20.6 11.8 13.2 14.8 7.3 Returns are as on August 31, 2023. Data source: MFI. Past performance may or may not be sustained in the future. The Total return variant of the Index has been used. Returns more than 1 year are CAGR. The performance figures pertain to the Index and do not in any manner indicate the returns/performance of the Scheme. YTD : Year to date MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html
Why ICICI Prudential Nifty IT ETF? Benefit by making the most of the disruption in sector Technology is bound to be an integral part of the New Normal World Exposure to strong and well established companies with global presence To gain exposure to a well-defined investment basket at a small amount
Riskometer and Disclaimers ICICI Prudential Nifty IT ETF (An open-ended Exchange Traded Fund tracking NIFTY IT Index) is suitable for investors who are seeking:* Long term wealth creation SCHEME BENCH- MARK SCHEME RISKOMETER An exchange traded fund that aims to provide returns that closely correspond to the returns provided by NIFTY IT Index, subject to tracking NIFTYITTRI error. *Investorsshouldconsulttheirfinancialadvisersifindoubtaboutwhethertheproductissuitablefor them. Investors understand that their principal will be at Very High risk Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis. The above risk-o-meters are as on 31st August 2023. Please refer to https://www.icicipruamc.com/news-and-updates/all-newsfor more details. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Disclaimer:All figures and other data given in this document are dated as of Aug 31, 2023 unless stated otherwise. The same may or may not be relevant at a future date. The information shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management Company Limited (the AMC). Prospective investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund. Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed in-house. Some of the material(s) used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as will , expect , should , believe and similar expressions or variations of such expressions, that are forward looking statements . Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Further, the information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision taken on this material.
Disclaimers Disclaimer by the National Stock Exchange of India Limited : The Product(s) are not sponsored, endorsed, sold or promoted by NSE Indices Limited (" NSE Indices"). NSE Indices does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty IT Index to track general stock market performance in India. The relationship of NSE Indices to the Issuer is only in respect of the licensing of certain trademarks and trade names of its Index which is determined, composed and calculated by NSE Indices without regard to the Issuer or the Product(s). NSE Indices does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty IT Index. NSE Indices is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE Indices has no obligation or liability in connection with the administration, marketing or trading of the Product(s). NSE Indices do not guarantee the accuracy and/or the completeness of the Nifty IT Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. NSE Indices does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty IT Index or any data included therein. NSE Indices makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE Indices expressly disclaim any and all liability for any damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. The threshold of INR 25 crores for direct transaction in the units of the schemes of the AMC shall not be applicable for the investors under the following category until October 31, 2023: Schemes managed by Employee Provident Fund Organisation India, Recognized Provident Funds approved gratuity funds and approved superannuation funds under Income Tax Act, 1961. Disclaimer of BSE Limited: It is to be distinctly understood that the permission given by BSE Limited should now in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the disclaimer clause of the BSE Limited. Disclaimer of National Stock Exchange of India Limited: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE ICICI ETF is part of ICICI Prudential Mutual Fund and is used for exchange traded funds managed by ICICI Prudential Asset Management Company Limited. Scrip Codes BSE: 543221 NSE: ICICITECH
