ICICI Prudential Life rolls out Sector Leaders Index Fund for ULIP investors; check details

ICICI Prudential Life Insurance Company Limited has launched a new equity-oriented fund, the ICICI Pru Sector Leaders Index Fund, expanding the investment choices available under its Unit Linked Insurance Plans (ULIPs). The fund is designed to give customers exposure to India’s leading companies across more than 20 key sectors, offering a ready-made and diversified equity portfolio in a single product.

The new fund targets investors who prefer a simple, rule-based and passive approach to equity investing. By tracking market leaders across sectors, it eliminates the need for individual stock selection while enabling participation in companies that dominate their respective industries. The offering is positioned as a core equity allocation for long-term investors seeking broad sector diversification with a bias towards established businesses that have demonstrated leadership and scale.

The ICICI Pru Sector Leaders Index Fund is a passive, index-based strategy that seeks to mirror the performance of the BSE India Sector Leaders Index. As with all index funds, regulatory constraints may at times prevent the fund from holding all index constituents in the same proportion, which could result in a tracking error. Any dividends received will be reinvested, helping compound returns and enhance fund value over the long term. The launch coincides with ICICI Prudential Life’s silver jubilee year and the fund is currently open for investment.

In terms of asset allocation, the fund will invest between 95% and 100% of its corpus in equities that form part of the underlying index. Up to 5% may be allocated to debt and money market instruments, including units of debt mutual funds, primarily to meet liquidity requirements as prescribed by regulations. The minimum investment amount has been set at ₹1,000, with additional investments permitted, subject to applicable stamp duty.

Commenting on the launch, Manish Kumar, Chief Investment Officer, ICICI Prudential Life Insurance Company Limited, said the fund offers a straightforward way for investors to tap into India’s long-term growth story. “By bringing together proven market leaders from over 20 sectors in a single, rule-based portfolio, the fund removes the complexity of stock selection while providing diversified exposure to some of the most influential companies in the economy,” he said.

Kumar added that in an environment marked by sectoral shifts and market volatility, an index-led strategy brings discipline and consistency to investing. He noted that equities remain the only asset class with the potential to deliver inflation-beating returns over the long term, and the fund can serve as a strong core allocation for investors using unit-linked savings products to meet long-term goals such as retirement planning and children’s education.

The launch also comes amid rising investor interest in sector-focused investments. Sectoral and thematic mutual funds saw a 37% jump in monthly inflows in November, according to data from the Association of Mutual Funds in India (AMFI). These funds received ₹1,864 crore in inflows during the month, compared with ₹1,366 crore in October. AMFI data also showed that four new sectoral and thematic funds launched in November together raised nearly ₹1,982 crore, highlighting sustained appetite for sector-driven investment strategies.