ICICI Prudential Mutual fund launches nifty pharma index fund

ICICI Prudential Mutual Fund launched ICICI Prudential Nifty Pharma Index Fund, which is an open-ended Index scheme replicating Nifty Pharma Index. The New Fund Offer (NFO) opened on November 25, 2022 and it will close on December 9, 2022.

“Pharma sector in India continues to flourish on the back of health schemes introduced by the government, increase in exports and growing domestic demand. Going forward, greater awareness, changing attitude towards preventive healthcare, increased precedence of lifestyle diseases and better access to insurance is likely to further boost the pharma industry. By investing in ICICI Prudential Nifty Pharma Index Fund, an investor gets to tap into the opportunities presented by the pharma sector,” Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said.

The Nifty Pharma Index is designed to reflect the behaviour and performance of the companies that are engaged in the manufacturing of pharmaceutical and biotechnology companies.

The AMC said in a statement that the index includes companies which are into generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics. The universe for stock selection is Nifty 500 and no single stock shall be more than 33%. Weights of the top three stocks cumulatively will not be more than 62% at the time of rebalancing. The index is rebalanced semi-annually on January 31st and July 31st.