ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund – Direct (G) : NFO Details

The ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund – Direct (G), Dec 2026 Fund is an open-ended target maturity index fund that invests in securities maturing on or before December 2026, tracking the CRISIL-IBX AAA Financial Services Index. This scheme offers moderate interest rate risk and relatively low credit risk. It allows daily transactions at NAV-based prices, with redemption proceeds dispatched within three business days. The scheme's performance is benchmarked against the CRISIL-IBX AAA Financial Services Index – Dec 2026, with NAV disclosures made daily after the initial five business days from allotment.

Details of the NFO: ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund Fund – Direct (G)

Investment Objective and Strategy

Objective:

The investment objective of the scheme is to track the CRISIL-IBX AAA Financial Services Index – Dec 2026 by investing in Securities maturing on or before December 2026, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved  and  the  scheme  does  not  assure  or guarantee any returns.

Investment Strategy:

1. AAA Corporate Bonds Focus: The scheme primarily invests in AAA-rated corporate bonds within the financial services sector, aligning with the CRISIL-IBX AAA Financial Services Index – Dec 2026.

2. Debt and Money Market Instruments: It includes investments in debt instruments and money market securities like treasury bills, government securities with residual maturity up to one year, and Tri-Party Repos.

3. Mutual Fund Debt Schemes: The scheme may invest in money market or liquid schemes managed by the AMC, adhering to SEBI regulations and investment objectives.

4. Target Maturity Date: The scheme is a target maturity date index fund, passively managed to track the CRISIL-IBX AAA Financial Services Index – Dec 2026.

5. Passive Investment Strategy: Employs a passive strategy, holding securities until maturity unless necessary to meet redemptions or IDCW payments.

6. Buy and Hold Approach: The primary strategy involves holding existing securities until maturity, reducing the need for frequent trading.

7. Index Tracking: Investments are aligned with the underlying index in terms of issuer weight, credit ratings, yield-to-maturity, and other key metrics.

8. Low Tracking Error: The scheme aims to maintain a low tracking error relative to the performance of the CRISIL-IBX AAA Financial Services Index – Dec 2026.

9. Liquidity Parameters: The portfolio is constructed to maintain liquidity in line with the characteristics of the underlying index.

10. Policy Implementation: The scheme generally holds securities in the same proportion as the underlying index, ensuring consistency with the index's performance.

Why to Invest in ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund – Direct (G)?

The ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund – Direct (G), Dec 2026, offers a compelling investment opportunity for those seeking stability and predictable returns. By focusing on AAA-rated corporate bonds within the financial services sector, the fund minimizes credit risk while providing moderate interest rate risk. Its passive investment strategy, coupled with a target maturity date, ensures that the fund tracks the CRISIL-IBX AAA Financial Services Index closely, offering low tracking error. Additionally, the open-ended nature of the fund allows for daily liquidity, making it an ideal choice for investors looking for a combination of safety, moderate returns, and easy access to their funds.

What Type of Investor Should Invest in This NFO?

This ICICI Prudential CRISIL-IBX AAA Financial Services Index Fund – Direct (G) is best suited for conservative investors seeking relatively low-risk investments with moderate returns over a medium-term horizon. It appeals to those who prefer a buy-and-hold strategy, aiming to hold their investments until maturity for stable returns. Retirees or individuals with low-risk tolerance can benefit from the fund's focus on high-quality AAA-rated corporate bonds, providing a secure investment option. Additionally, investors looking for a diversified portfolio component that tracks a well-established index while offering daily liquidity and transparency in operations will find this fund appealing