Highlights:
· ICICI Prudential Nifty Pharma Index Fund is an open-ended Index scheme replicating the Nifty Pharma Index
· The index includes companies that are engaged into manufacturing of pharmaceuticals and biotechnology companies
· Nifty Pharma Index has grown at 9.52% annually since October 2012
· Rs.1 lakh invested in Nifty Pharma Index in 2012 would be worth Rs. 2.48 lakhs by end of October 2022
Mumbai, November 25, 2022: ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty Pharma Index Fund, an open-ended Index scheme replicating Nifty Pharma Index. The Index is designed to reflect the behaviour and performance of the companies that are engaged in the manufacturing of pharmaceuticals and biotechnology companies.
Speaking on the launch of the product, Mr. Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “Pharma sector in India continues to flourish on the back of health schemes introduced by the government, increase in exports and growing domestic demand. Going forward, greater awareness, changing attitude towards preventive healthcare, increased precedence of lifestyle diseases and better access to insurance is likely to further boost the pharma industry. By investing in ICICI Prudential Nifty Pharma Index Fund, an investor gets to tap into the opportunities presented by the pharma sector.
Over the years, India has emerged as a pharmacy to the world by being the largest provider of generic drugs globally and exporting pharmaceuticals to over 200+ countries. Also, 70% of World Health Organisation’s vaccines (as per the essential Immunization schedule) are sourced from India. India is also home to the second highest number of US FDA approved plants outside the US and is the 3rd largest industry worldwide in terms of production by volume and 14th by value.
Some of the growth drivers for the sector are as follows:
Government Support – As per the Union Budget 2022-23, US$ 4.83 billion has been allocated to the 'National Health Mission’
Medical tourism – Quality services at marginal costs compared to the US, Europe and South Asia.
Skilled drug manufacturing – Low-cost generic patented drugs as well as end-to-end manufacturing
High domestic demand - Launch of one of the largest National Health Protection Schemes globally
About the Index
The index includes companies which are into generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and biologics. The universe for stock selection is Nifty 500 and no single stock shall be more than 33%. Weights of top three stocks cumulatively will not be more than 62% at the time of rebalancing. The index will be rebalanced semi-annually on January 31st and July 31st.
Above index constituents and statistics are as of October 31, 2022. Data source: www.nseindia.com . The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s).
Index Performance
The Nifty Pharma Index has grown at 9.52% annually since October 2012. For example, Rs.1,00,000 invested in the Nifty Pharma Index in 2012 would be worth Rs. 2,48,220 by end of October 2022.
Data as on 31st October 2022. Data source: MFI Explorer. Figures in the chart are rebased to 100000. Past performance may or may not be sustained in the future. The performance of the indices is the Total Return variant of the Index. The performance of the index does not signify the performance of the scheme
Why should investors consider ICICI Prudential Nifty Pharma Index Fund?
· Low cost of production and R&D boosts efficiency, leading to competitive exports.
· High economic growth along with increasing penetration of health insurance to push expenditure on healthcare and medicine
· Greater awareness, changing attitude towards preventive healthcare, increased precedence of lifestyle
diseases and better access to insurance will further boost the industry
· Up to 100% and 74% Foreign Direct Investment (FDI) allowed for Greenfield and Brownfield pharmaceuticals projects respectively through automatic route
· The Indian drugs and pharmaceuticals sector received cumulative FDIs worth US$ 19.41 billion between April 2000-March 2022 thus reflecting the confidence in the sector
Source: investindia.gov.in
-X-
For further information, please contact Adil Bakhshi, Head PR & Corporate Communication
Email: adil_bakhshi@icicipruamc.com , Landline: 022-66470274
Riskometer and Disclaimer
ICICI Prudential Nifty Pharma Index Fund - An open-ended Index scheme replicating the Nifty Pharma Index
#It may be noted that the scheme risk-o-meter specified above is based on the internal assessment of scheme characteristics and may vary post NFO, when the actual investments are made. The same shall be updated in accordance with provisions of SEBI circular dated October 5, 2020 on Product labelling in mutual fund schemes on ongoing basis.
Disclaimer of NSE Indices Limited (NSE Indices):
The Product(s) are not sponsored, endorsed, sold or promoted by NSE Indices Limited (" NSE Indices"). NSE Indices does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty Pharma Index to track general stock market performance in India. The relationship of NSE Indices to the Issuer is only in respect of the licensing of certain trademarks and trade names of its Index which is determined, composed and calculated by NSE Indices without regard to the Issuer or the Product(s). NSE Indices does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty Pharma Index. NSE Indices is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE Indices has no obligation or liability in connection with the administration, marketing or trading of the Product(s).
NSE Indices do not guarantee the accuracy and/or the completeness of the Nifty Pharma Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. NSE Indices does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty Pharma Index or any data included therein. NSE Indices makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE Indices expressly disclaim any and all liability for any damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.
The information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to buy or sell or solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US") and/or Canada or for the benefit of US persons (being persons falling within the definition of the term "US Person" under the US Securities Act, 1933, as amended) or persons residing in Canada.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
