ICICI Prudential BSE Power ETF NFO Opens With ₹1,000 Minimum Investment

Key Takeaways

• ICICI Prudential Mutual Fund opened the ICICI Prudential BSE Power ETF NFO on 26 October 2026, with subscriptions closing on 30 October.
• The ETF seeks to track the BSE Power Total Return Index, subject to expenses and tracking error.
• The minimum application amount during the NFO is ₹1,000, with subsequent investments in multiples of ₹1.

ICICI Prudential Mutual Fund has opened the new fund offer of ICICI Prudential BSE Power ETF, a sector-focused exchange-traded fund designed to track the performance of the BSE Power Index.

The subscription period began on 26 October 2026 and will end on 30 October 2026.

The ETF provides exposure to companies represented in the power-sector benchmark through a single investment product.

According to the scheme information, its objective is to generate returns before expenses that closely correspond to the total returns of the underlying index, subject to tracking error.

Investment Strategy

The ICICI Prudential BSE Power ETF follows a passive investment approach.

Rather than selecting individual power-sector companies through discretionary stock picking, the scheme seeks to replicate or track its benchmark in accordance with the relevant index methodology and investment rules.

The BSE Power Index represents listed companies associated with the power sector.

Changes in the prices and index weights of constituent companies will influence the benchmark's performance.

The ETF's returns will also depend on fund expenses, portfolio implementation and tracking differences.

Sector-focused ETFs are structurally different from broad-market index funds because their exposure is concentrated in a particular industry.

For a power-sector product, developments involving electricity demand, generation capacity, tariffs, fuel costs, financing conditions and sector regulation can affect the underlying companies, although their individual effects will vary.

NFO Details

The fund managers named in the launch information are Nishit Patel, Ashwini Bharcuha and Venus Ahuja.

The ETF will operate under the applicable exchange-traded fund framework after allotment and commencement of trading, subject to the relevant listing arrangements.

How the ETF Tracks the Power Sector

As with other index-tracking funds, the scheme aims to maintain exposure consistent with its benchmark.

However, tracking error may arise from cash holdings, transaction costs, index rebalancing, expenses and differences between the scheme's holdings and benchmark constituents.

Consequently, the ETF's actual returns may differ from those of the BSE Power TRI.

The power sector also includes businesses with different operating models, and the underlying index's composition determines how these companies contribute to returns.

The launch adds a sector-specific passive investment product to ICICI Prudential Mutual Fund's exchange-traded fund offerings.

It does not imply that the power sector or the ETF will generate positive returns during any particular period.