ICICI Prudential Launches Sector Leaders Index Fund Under ULIPs

ICICI Prudential Life Insurance Company has announced the launch of the ICICI Pru Sector Leaders Index Fund, a new passive equity fund offered under its unit-linked insurance plans (ULIPs). The fund aims to provide investors exposure to market-leading companies across more than 20 key sectors of the Indian economy through a single, rule-based portfolio.

It is benchmarked to the BSE India Sector Leaders Index and designed for customers seeking a passive approach to long-term equity investing without selecting individual stocks. This launch reflects the growing demand for index-based investment options within insurance-linked products.

Key Features Of The Fund

The ICICI Pru Sector Leaders Index Fund will invest 95–100% of its assets in equities that are constituents of the benchmark index. Up to 5% of the portfolio may be allocated to debt and money market instruments to meet liquidity requirements, in line with regulatory norms.

Dividends received under the fund will be reinvested, ensuring compounding benefits for policyholders. The minimum investment amount is ₹1,000, with additional contributions permitted as per applicable ULIP regulations.

Investment Strategy And Benchmark

As an index-based offering, the fund seeks to replicate the performance of the BSE India Sector Leaders Index. This index comprises leading companies from over 20 sectors, providing diversified exposure to market leaders.

While the fund aims to mirror the index, regulatory constraints may lead to deviations in constituent weights, resulting in tracking error. The passive strategy eliminates the need for active stock selection, making it suitable for investors preferring a rule-based approach.

Product Availability

The fund is currently open for investment and is available through select ULIP products offered by ICICI Prudential Life. Customers can allocate premiums to this fund while purchasing new ULIP policies or through switches in existing policies, subject to product terms.

The offering is positioned to cater to long-term investors seeking equity exposure within an insurance framework. By combining index-based investing with ULIP flexibility, the fund aims to deliver a simplified investment experience.

Read More: Bajaj Life Insurance Unveils India Consumption Fund Under its ULIP Plans.

Conclusion

The launch of the ICICI Pru Sector Leaders Index Fund underscores the insurer’s focus on expanding passive investment options within ULIPs. By tracking a diversified index of sector-leading companies, the fund offers investors a structured way to participate in India’s growth story.

Its rule-based approach and reinvestment of dividends enhance transparency and efficiency. This initiative reflects a broader trend of integrating market-linked strategies with insurance solutions for long-term wealth creation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.