#ICICIPruLife #BSE500 #IndexFund #ULIP #ValueInvesting #IndianEconomy #WealthCreation #FinancialSecurity #ICICIPru
Chandigarh: ICICI Prudential Life Insurance Company Limited has announced the launch of its new fund, the ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund. This offering, exclusively for the Company’s Unit Linked Insurance Plans (ULIPs), is designed to allow investors to participate directly in India’s robust economic growth story by employing a systematic value investing strategy.
🎯 Fund’s Investment Strategy: Focussing on Undervalued Gems
The new index fund will mirror the BSE 500 Enhanced Value 50 Index. This index is constructed based on a rigorous, rule-based methodology, comprising 50 companies selected from the broader BSE 500 index. These companies are chosen using key value-based investment parameters such as:
- Earnings relative to price.
- Book value relative to price.
- Sales relative to price.
The core objective of the fund is to capture investment opportunities in companies that are fundamentally strong but are temporarily undervalued—meaning their market price is below their true potential. Customers stand to benefit as these stocks eventually appreciate towards their fair intrinsic valuations over the long term.
🌐 Systematic and Diversified Portfolio
The BSE 500 Enhanced Value 50 Index Fund features a systematic, rule-based investment process and undergoes quarterly reconstitution. This regular rebalancing ensures the fund remains aligned with evolving value opportunities across the large-cap, mid-cap, and small-cap segments, offering a highly diversified portfolio to customers.
Historically, the underlying index has demonstrated resilience, delivering a more robust performance than its parent index in 12 out of 19 years from 2006 to 2024. This track record underscores the long-term potential of a disciplined value strategy.
The passive management style of the index fund allows customers to access this diversified portfolio with minimal effort and low tracking error. However, the company notes that regulatory restrictions may, at times, prevent the fund from investing in all index stocks precisely according to their weights, which could result in a possible tracking error.
🗣️ Management Commentary
Mr. Manish Kumar, Chief Investment Officer, ICICI Prudential Life Insurance Company Limited, commented on the launch:
“The ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund, a passively managed fund, will offer our ULIP customers a simple and transparent way to participate in India’s growth story. It will offer them the proven philosophy of long-term value investing to build wealth.”
He emphasized the customer-centric approach, stating that ULIPs are an ideal vehicle for long-term wealth creation due to their design, which nudges customers towards a semi-forced discipline in investing.
“This index fund will enable our customers to achieve their long-term goals which could range from retirement planning to children’s education. Notably, the life cover offered by ULIP products ensures financial security for the family in case of an eventuality, besides being cost and tax efficient.”
🔑 Key Takeaways for Investors
The launch of the BSE 500 Enhanced Value 50 Index Fund further strengthens ICICI Prudential Life’s range of investment solutions, making long-term wealth creation more accessible and enabling financial security for its clientele.
The new fund is available with popular ULIP products such as:
- ICICI Pru Signature Assure
- ICICI Pru Smartkid Assure
- ICICI Pru Smart Insurance Plan Plus (SIP+), among others.
#ICICIPruLife #BSE500 #IndexFund #ULIP #ValueInvesting #IndianEconomy #WealthCreation #FinancialSecurity #ICICIPru
