ICICI Prudential Life launches BSE 500 Enhanced Value 50 Index Fund for ULIP investors. Check details

ICICI Prudential Life Insurance, on 4 November 2025, announced the launch of — ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund — for investors who are looking to put their money in Unit Linked Insurance Plans (ULIPs).

According to the official announcement, the new fund aims to provide its investors with a platform which helps them participate in India's economic growth. The fund will invest in stocks which are fundamentally strong and are offering value below their true potential levels.

The new fund offering (NFO) opened for public applications on 27 October 2025.

“We believe, the ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund will enable our customers to systematically save. Wealth creation is a long-term process and ULIPs, by design are ideal for this as they nudge customers to have a semi-forced discipline to investing,” said Manish Kumar, the Chief Investment Officer (CIO) of ICICI Prudential Life Insurance.

Kumar also recommended that the index fund is ideal for people who are looking to invest with a long-term goal, like their retirement planning or their children's education.

How will the fund generate returns?

The new ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund will mirror the returns generated by the BSE 500 Enhanced Value 50 Index. This index tracks 50 companies which are selected through investment parameters like earnings, book value and sales relative to price.

“The fund’s objective is to capture investment opportunities in fundamentally strong but temporarily undervalued companies, enabling customers to benefit as these stocks move towards their fair valuations over time,” the company said in its official announcement.

The filing data also showed that over the years, the BSE 500 Enhanced Value 50 Index has generated ‘resilient performance,’ which highlighted a long-term potential for a disciplined value investment strategy.

What is an index fund?

An index fund is a type of fund which invests in the same stocks as the benchmark index it is based on, in this case, the BSE 500 Enhanced Value 50 Index.

An index fund is a passively managed fund which mandates that the fund manager will invest only in the same stocks as the underlying index in the same proportion without changing the composition of the holdings.

According to the official announcement, the ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund follows a ‘systematic, rule-based investment process.’

The fund will be reconstituted on a quarterly basis to ensure that the returns are aligned with the evolving value investment opportunities across the large-cap, mid-cap and small-cap segments.

“This will allow customers to access a diversified portfolio with minimal effort and low tracking error,” said ICICI Prudential in its announcement on Tuesday.

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Disclaimer: The views and recommendations expressed are those of individual analysts or broking firms, not Mint. Investments in mutual funds like index funds and other instruments are subject to market risks. Past performance does not guarantee future returns. Investors should carefully assess risks and consult a certified financial advisor before investing their money in these assets.