ICICI Prudential Mutual Fund Launches BSE Power ETF, NFO Opens October 26 With ₹1,000 Minimum Investment

Mumbai: ICICI Prudential Mutual Fund has introduced the ICICI Prudential BSE Power ETF, allowing investors to tap into India's growing power sector via an exchange-traded fund. The NFO commenced on October 26 and will conclude on October 30, 2026, with a minimum investment requirement of Rs 1,000.

The ETF is open-ended and aims to mirror the performance of the BSE Power Index, which provides exposure to entities engaged in electricity generation, transmission, integrated utilities, and heavy electrical equipment. The BSE Power Index is composed of heavy electrical equipment firms (40.6%), power generation companies (37.1%), transmission companies (13.1%), and integrated utilities (9.2%).

Post allotment, investors can purchase or sell ETF units on stock exchanges in units of one. As of September 30, 2026, the BSE Power Index showcased a strong historical performance with a compound annual growth rate (CAGR) of 20% over five years, 17% over three years, and 8% over one year. The index is heavily weighted towards large-cap companies at 75.57% and mid-cap firms at 24.42%.

Key constituents of the index include NTPC, Power Grid Corporation, Adani Power, Bharat Heavy Electricals, and Tata Power. India's electricity demand has been on an upward trajectory, expanding by an annual rate of 7.4% between FY21 and FY25, compared to the global average of 0.9%. Per capita electricity consumption surged by 53%, reaching 1,460 kWh in FY25 from 957 kWh in FY14. The peak power demand reached 271 GW in May 2026, with the Central Electricity Authority forecasting the demand to escalate to 459 GW by FY36.

India's installed power capacity is expected to surge from 596 GW in 2025 to 1,154 GW by 2034, driven by industrial growth, urbanization, and government initiatives bolstering electricity infrastructure. However, potential investors should weigh sector concentration risks and market volatility before committing their funds.