Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Divi’s Laboratories, Cipla and Apollo Hospitals Enterprise type the leading 5 names of the Nifty Healthcare Index.
ICICI Prudential Mutual Fund has announced the launch of Healthcare ETF for investors searching to invest in the healthcare sector. The New Fund Offer (NFO) of ICICI Prudential Healthcare ETF opens on May 06, 2021, and closes on May 14, 2021. The Scheme is an open-ended Exchange Traded Fund (ETF) tracking Nifty Healthcare Index and offers exposure to major firms forming portion of the healthcare sector. The fund is appropriate for investors searching to acquire exposure from the general healthcare segment. The minimum investment for the duration of NFO necessary is Rs. 1,000.
The scheme aims to provide returns that closely correspond to the returns supplied by its benchmark Nifty Healthcare TRI Index in the very same proportions, topic to tracking errors. The fund will be listed on NSE and BSE and will the units will be obtainable for obtain, sell for the duration of the trading hours.
Speaking on the launch of the item, Nimesh Shah, MD & CEO, ICICI Prudential AMC mentioned, “ICICI Prudential Healthcare ETF provides exposure to a basket of securities in the healthcare sector. Given the rising health problems, lifestyle choices and outbreak of epidemics, the healthcare sector has a strong potential to grow steadily in the coming decade. Also, the need for better healthcare facilities will always be a constant need considering the large population of India. Therefore this sector provides a good scope of investment.”
The Nifty Healthcare Index comprises of 20 quickly-expanding Indian Healthcare firms. In terms of index constituents, Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Divi’s Laboratories, Cipla and Apollo Hospitals Enterprise type the leading 5 names of the index. This index has outperformed the Nifty 50 index in 6 out of the last 10 calendar years.
Considering the development drivers of the healthcare sector, amidst the Covid-19 pandemic, Healthcare funds provide investors with an chance to advantage from this expanding segment in a price-productive manner by means of ETFs. Exposure to distinct sectors requires to be as per one’s danger profile and also calls for one to preserve reviewing its overall performance on a regular basis. The danger-reward of a sectoral fund is greater than a plain-vanilla diversified equity fund.