ICICI Prudential Mutual Fund has launched the ICICI Prudential BSE Power ETF, an open-ended exchange-traded fund (ETF) that will track the BSE Power Index.
The new fund offer (NFO) opened on October 26 and will close on October 30, 2026.
The index comprises 17 companies from the BSE 500 classified across power generation, transmission, distribution, integrated utilities, power trading, heavy electrical equipment and other electrical equipment.
According to data from MFI Explorer, the BSE Power Index delivered a compound annual growth rate (CAGR) of 20% over five years, 17% over three years and 8% over one year, as of September 30, 2026. These are index returns and do not represent the returns of the newly launched ETF.
The index is weighted by free-float market capitalisation, with an individual stock weight cap of 33% and a cap of 30% for each basic industry. Utilities account for 59.59% of the index, while industrials make up 40.41%. Large-cap stocks constitute 75.57% of the index, and mid-cap stocks account for 24.42%. Its top 10 constituents represent 78.90% of the index.
The fund will be managed by Nishit Patel, Ashwini Bharucha and Venus Ahuja.
Power sector growth and investment risks
The launch comes amid rising electricity demand and investments in generation capacity and transmission infrastructure. According to figures cited in the fund house’s release, India’s electricity consumption grew at an annual rate of 7.4% between FY21 and FY25, compared with 0.9% globally.
The country’s peak power demand reached a record 271 GW in May 2026, up from 130 GW in FY14, according to the release.
However, an ETF tracking a sector-specific index concentrates investments in companies linked to that sector. Its performance will depend on the underlying stocks and can be affected by changes in electricity demand, fuel costs, regulation, capital expenditure and valuations.
Investors should also account for market-price fluctuations and tracking error, which can cause an ETF’s returns to differ from those of its underlying index. Past index performance does not guarantee future returns.
The scheme’s investment objective, expenses, tracking arrangements and other terms are detailed in its scheme information document.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.