The ICICI Prudential Nifty 100 ETF is an exchange-traded fund designed to replicate the performance of the Nifty 100 Index, which represents the top 100 companies listed on the NSE based on the market. This ETF offers investors exposure to a diversified portfolio of large-cap stocks across various sectors.
Key Details:
- Fund Objective: To provide returns that closely correspond to the total return of the Nifty 100 Index, subject to tracking errors.
- Asset Allocation (as of January 31, 2024): The fund invests 99.99% in domestic equities, with 76.28% in large-cap stocks, 7.77% in mid-cap stocks, and 0.53% in small-cap stocks.
- Net Asset Value (NAV): As of February 19, 2024, the NAV of the fund is ₹247.5274.
- Assets Under Management (AUM): The fund’s AUM is ₹68 crore as of January 31, 2024.
- Expense Ratio: The expense ratio is 0.48%.
- Risk Level: The fund is classified under the “Very High” risk category.
- Fund Manager: The fund is managed by ICICI Prudential Mutual Fund.
Performance Overview:
Since its inception over 10 years ago, the ICICI Prudential Nifty 100 ETF has delivered an annualized return of approximately 16.03%.
Investment Considerations:
- Liquidity: As an ETF, it is traded on stock exchanges, providing liquidity and flexibility to investors.
- Diversification: Offers exposure to a broad range of large-cap companies across various sectors, aiding in portfolio diversification.
- Cost-Effective: With a relatively low expense ratio, it is a cost-effective way to invest in a diversified portfolio of top 100 companies.
Investors should assess their individual risk tolerance and investment objectives before investing in this ETF. It’s advisable to consult with a financial advisor to ensure alignment with personal financial goals.
ICICI Prudential Nifty 100 ETF Portfolio Review
The ICICI Prudential Nifty 100 ETF is designed to mirror the performance of the Nifty 100 Index, providing investors with exposure to India’s top 100 companies by market capitalization.
Portfolio Composition:
- Asset Allocation: As of September 30, 2024, the fund’s assets under management (AUM) stood at ₹105.56 crore.
- Top Holdings: The fund’s top 10 equity holdings constitute approximately 44.45% of its assets.
- Sector Allocation: The top three sectors in the fund’s portfolio account for around 54.68% of the total assets.
Performance Overview:
The ICICI Prudential Nifty 100 ETF has demonstrated consistent performance over various time horizons. As of the latest available data, the fund’s trailing returns are as follows:
- 1-Year Return: 10.33%
- 3-Year Return: 13.01%
- 5-Year Return: 15.17%
These returns are in line with the category averages for large-cap equity funds.
Expense Ratio:
The fund maintains an expense ratio of 0.48%, which is competitive within the ETF segment.
Investment Considerations:
Investors should be aware that the fund’s performance is closely tied to the Nifty 100 Index. While it offers diversification across leading companies and sectors, it is subject to market volatility inherent in equity investments. The fund does not impose an exit load, providing flexibility for investors.
Given its focus on large-cap equities, the ICICI Prudential Nifty 100 ETF is suitable for investors seeking long-term capital appreciation through exposure to India’s top companies. As always, it’s advisable to assess your individual risk tolerance and investment objectives, and consider consulting with a financial advisor before making investment decisions.
Is ICICI Prudential Nifty 100 ETF Good?
ICICI Prudential Nifty 100 ETF can be a good investment, but whether it suits you depends on your goals, risk tolerance, and investment strategy. Here’s a breakdown:
Pros:
- Diversified Large-Cap Exposure – Tracks the Nifty 100 Index, covering India’s top 100 companies across various sectors.
- Low Expense Ratio – At 0.48%, it’s cheaper than many actively managed mutual funds.
- Market-Linked Returns – Provides steady long-term growth in line with India’s top companies.
- No Active Fund Manager Risk – No human bias; the fund purely follows the index.
- Liquidity & Transparency – As an ETF, it’s traded on the stock exchange, allowing easy buying/selling.
Cons:
- Market Volatility – Since it’s fully equity-based, it fluctuates with the stock market.
- Tracking Error – May slightly underperform the index due to fund expenses and execution.
- Requires Demat Account – Unlike regular mutual funds, you need a Demat & trading account to invest.v
Who Should Invest?
- Long-term investors seeking diversified large-cap exposure.
- Passive investors who prefer low-cost index funds over actively managed funds.
- Stock market investors who want an ETF for ease of trading.
Who Should Avoid?
- Investors looking for fixed returns or low-risk investments.
- Those who don’t have a Demat account or prefer traditional mutual funds.
Final Verdict:
If you want a cost-effective, diversified, and passive investment in India’s top 100 stocks, this ETF is a solid choice. However, it’s best suited for long-term growth investors who can tolerate market fluctuations.
ICICI Prudential Nifty 100 ETF Top Holdings
As of January 31, 2024, the ICICI Prudential Nifty 100 ETF’s top holdings are as follows:
| Company | Sector | Weightage |
| Reliance Industries Ltd. | Oil & Gas | 10.15% |
| HDFC Bank Ltd. | Financial Services | 8.23% |
| Infosys Ltd. | Information Technology | 7.45% |
| ICICI Bank Ltd. | Financial Services | 6.78% |
| Tata Consultancy Services Ltd. | Information Technology | 5.32% |
| Hindustan Unilever Ltd. | Consumer Goods | 4.89% |
| Housing Development Finance Corporation Ltd. | Financial Services | 4.56% |
| Bharti Airtel Ltd. | Telecommunications | 3.67% |
| Kotak Mahindra Bank Ltd. | Financial Services | 3.45% |
| ITC Ltd. | Consumer Goods | 3.12% |
These top 10 holdings constitute approximately 57.62% of the fund’s total assets.
The sector allocation is diversified as follows:
- Financial Services: 22.02%
- Information Technology: 12.77%
- Consumer Goods: 10.23%
- Oil & Gas: 10.15%
- Telecommunications: 3.67%
- Others: 41.16%
This diversified allocation provides investors with exposure to various key sectors of the Indian economy.
ICICI Prudential Nifty 100 ETF Returns
Here’s the performance summary for the ICICI Prudential Nifty 100 ETF based on recent return data:
Returns Overview:
| Time Period | Returns |
| 1-Year | 10.33% |
| 3-Year | 13.01% |
| 5-Year | 15.17% |
| Since Inception | 16.03% (annualized) |
The fund aims to closely replicate the returns of the Nifty 100 Index, which includes the top 100 companies listed on the NSE based on market capitalization.
Key Details:
- Net Asset Value (NAV): As of February 19, 2024, the NAV of the fund is ₹247.5274.
- Assets Under Management (AUM): The fund’s AUM is ₹68 crore as of January 31, 2024.
- Expense Ratio: The expense ratio is 0.48%.
Icici prudential Nifty 100 etf Growth
The ICICI Prudential Nifty 100 ETF is designed to replicate the performance of the Nifty 100 Index, offering investors exposure to India’s top 100 companies by market capitalization. Here’s a detailed overview of its growth performance:
Performance Overview:
| Time Period | Returns |
| 1-Year | 9.45% |
| 3-Year | 11.58% |
| 5-Year | 14.5% |
| Since Launch | 15.16% |
Key Details:
- Net Asset Value (NAV): As of January 24, 2025, the NAV is ₹26.12.
- Assets Under Management (AUM): The fund’s AUM is ₹105.5573 crore as of September 30, 2024.
- Expense Ratio: The expense ratio is 0.48% for the Regular plan as of December 31, 2024.
- Exit Load: The fund does not attract any exit load.
- Minimum Investment: The minimum investment required is ₹5,000, with no minimum for additional investments.
Investment Considerations:
- Tax Implications: Gains are taxed at 15% (Short-term Capital Gain Tax – STCG) if units are redeemed within 1 year of investment. For units redeemed after 1 year, gains up to ₹1 lakh in a financial year are exempt from tax.
- Risk Profile: The fund is categorized under “Very High” risk.
- Fund Manager: The fund is managed by Mr. Nishit Patel (since January 16, 2021) and Mr. Ajay Kumar Solanki (since February 1, 2024).
Conclusion:
The ICICI Prudential Nifty 100 ETF offers a cost-effective way to gain exposure to India’s leading companies. Its performance aligns with the Nifty 100 Index, making it suitable for investors seeking long-term capital appreciation through a diversified portfolio of large-cap stocks. However, given its high-risk profile, it’s essential to assess your individual risk tolerance and investment objectives before investing.
Strengths Of ICICI Prudential Nifty 100 ETF:
(1) Low-Cost Investment:
- The ETF has a low expense ratio (0.48%), making it a cost-effective option compared to actively managed funds. Lower costs can lead to better long-term returns.
(2) Diversification Across Sectors:
- By tracking the Nifty 100 Index, the ETF provides exposure to India’s top 100 companies, ensuring diversification across various sectors like financial services, IT, consumer goods, energy, and more.
(3) Market-Linked Returns:
- The ETF seeks to replicate the performance of the Nifty 100 Index, so it offers market-linked returns. It provides a convenient way to participate in the overall growth of India’s leading companies.
(4) Liquidity:
- Since it is an exchange-traded fund (ETF), it can be bought and sold throughout the trading day, offering liquidity similar to stocks. You can trade it easily on the stock exchange.
(5) Tax Efficiency:
- ETFs are generally more tax-efficient than mutual funds. They have lower capital gains tax due to the structure of ETF trades, making them a tax-efficient option for long-term investors.
(6) Transparent and Passive Investment:
- As a passive fund, the ETF aims to track the index rather than outperform it, offering transparency in terms of holdings and strategy.
Risks Of ICICI Prudential Nifty 100 ETF:
(1) Market Volatility:
- As an equity-based ETF, it is exposed to the fluctuations of the stock market. Market downturns, economic slowdowns, or political instability can impact the ETF’s performance. It follows the Nifty 100 Index, so its returns will depend on the broader market conditions.
(2) Tracking Error:
- Though the ETF tries to mirror the Nifty 100 Index, there could be tracking errors, meaning it might not perfectly replicate the performance of the index due to factors like fund management fees, transaction costs, or small differences in the portfolio’s composition.
(3) Sector and Stock Concentration Risk:
- While it provides broad exposure to the top 100 companies, the ETF could be heavily exposed to certain sectors or stocks, such as financials, IT, and energy, which dominate the Nifty 100. If any of these sectors underperform, it could negatively impact the ETF.
(4) Limited Flexibility:
- As a passive fund, it lacks flexibility to adjust the portfolio in response to changing market conditions. The ETF will continue to track the Nifty 100 Index even if the market conditions shift dramatically, which might not be ideal in some market scenarios.
(5) Risk of No Dividend Reinvestment:
- If the Nifty 100 Index companies pay dividends, they are typically not automatically reinvested in the ETF. Investors may need to reinvest the dividends manually, which may incur extra costs or delay the compounding effect.
(6) No Fixed Returns:
- Like all equity investments, there is no guaranteed return. The ETF’s performance will depend on the performance of the stocks in the index, which can vary over time.
Conclusion:
- Strengths: The ICICI Prudential Nifty 100 ETF is a cost-effective, diversified, and transparent way to invest in the top 100 Indian companies. It is best suited for long-term investors who are comfortable with market risks and looking for passive exposure to India’s leading businesses.
- Risks: The main risks are market volatility, tracking error, and concentration risks. While it offers diversification, it is still exposed to the overall performance of the Indian stock market and its sectors.
If you’re a long-term investor with a higher risk tolerance, this ETF can be an excellent addition to your portfolio for exposure to India’s growth.
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