ICICI Prudential Life : ICICI Prudential Life has launched its new BSE 500 Enhanced Value 50 Index Fund for ULIP investors. The company aims to provide investors with long-term investment opportunities. Let’s learn more about the returns this fund will generate.
ICICI Prudential Life: If you’re interested in investing in Unit-Linked Insurance Plans (ULIPs), you have a great opportunity. ICICI Prudential Life has launched its new BSE 500 Enhanced Value 50 Index Fund for ULIP investors. The company aims to provide investors with long-term investment opportunities. The fund will focus on companies that are fundamentally strong but currently trading below their intrinsic value. Unit-Linked Insurance Plans (ULIPs) are a scheme that combines the benefits of both insurance and investment.
According to the official announcement, the aim of this new fund is to provide its investors with a platform that helps them participate in India’s economic growth. This fund will invest in stocks that are fundamentally strong and are available at prices below their true potential.
This index fund is better for the long term.
Manish Kumar, Chief Investment Officer (CIO) of ICICI Prudential Life Insurance, said, “We believe that the ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund will help our customers save systematically. Wealth creation is a long-term process, and ULIPs, by their design, are better suited for this purpose. This is because they motivate customers to maintain semi-forced discipline in investing.” Kumar further added that if you are looking to invest for your retirement planning or your children’s education, this index fund could be a good option.
Learn about the fund’s investment strategy
This index fund follows a systematic and rules-based investment process. It is reconstituted quarterly to keep pace with changing value opportunities across the large-, mid-, and small-cap segments. This provides clients with access to a diversified portfolio with minimal effort and minimal tracking error. However, due to regulatory requirements, the fund may not be able to invest in all the stocks included in the index according to their weightings at all times. Therefore, some degree of tracking error may be possible.
How will this fund deliver returns?
The new ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund will follow the returns of the BSE 500 Enhanced Value 50 Index. This index tracks 50 companies selected using investment parameters such as earnings, book value, and price-to-sales.
What is an Index Fund?
An index fund is a mutual fund that invests in stocks similar to a specified benchmark index. In this case, this fund will track the BSE 500 Enhanced Value 50 Index. It is a passively managed fund, meaning the fund manager will invest only in the stocks and proportions of that index. The fund’s composition is not frequently changed, providing investors with a stable and transparent portfolio.
What are ULIPs?
Unit-Linked Insurance Plans (ULIPs) are plans that combine the benefits of both insurance and investment. This plan provides life cover, providing financial security to your family in your absence. Additionally, this plan helps you grow your money through investment. Thus, ULIPs are a means of both securing your future and creating wealth.
