ICICI Pru Nifty 5 yr Benchmark G-Sec ETF

About ICICI Prudential Nifty 5-Year Benchmark G Sec ETF

• ICICI Prudential Nifty 5-year Benchmark G-sector ETF is an open-ended gilt scheme with a constant duration of 5 years.

• It belongs to ICICI Mutual Fund House.

• ICICI Prudential Nifty 5-year Benchmark G-sector ETF was launched on March 7, 2022.

• The ETF’s assets under management (AUM) were ₹78.72 crore as of July 31, 2024.

• Darshil Dedhia is the fund manager.

• The ETF units are listed on both exchanges NSE and BSE and one can invest by buying units through a broker.

• Retail investors can buy the ETF units directly from a demat account with a registered broker.

Investment Objective & Benchmark

• The primary objective of the ICICI Prudential Nifty 5-Year G-Sec ETF is to mirror the returns of the underlying index, subject to minor tracking errors.
• It is benchmarked against of Nifty 5-year Benchmark G-Sec Index. This index tracks the performance of government securities bonds issued by the Indian government that have a maturity of around 5 years.
• The ICICI Prudential Nifty 5-Year G-Sec ETF is a good choice for investors looking for a stable, relatively low-risk investment with a medium-term horizon of about 5 years.
• It's particularly appealing to those who prefer the safety and predictable returns of government bonds.
• The ETF invests in government securities and the risk of default is extremely low.
• Government securities generally have lower credit risk than corporate bonds, but they are still exposed to interest rate fluctuations and broader economic factors.
• Investing in this ETF gives you exposure to a diversified portfolio of government securities, which spreads out risk compared to holding just one security.

Asset Allocation & Portfolio Composition

• The fund allocation of this ETF comprises around 98.25% in government securities and 1.75% in cash & cash Equivalent.

• ICICI Prudential Nifty 5-Year G-Sec ETF has given a return of 8.67% in a single year to its investors compared to its benchmarked index which has given a return of 8.55%.

• Since its inception, ICICI Prudential Nifty 5-Year G-Sec ETF has given an annualised return of 6.35% as of July 31, 2024.