ICICI Bharat 22 FOF : INTRODUCTION
ICICI Bharat 22 FOF is a mutual fund scheme that invests in Bharat 22 Exchange Traded Fund (ETF).
The Bharat 22 Exchange Traded Fund (ETF) follows the Bharat 22 Index. The Bharat 22 Index comprises 22 selected public and private sector companies that have been disinvested as part of the Indian central government’s disinvestment policy. It is predominantly Government-owned public sector companies and a few private sector companies where the government has holdings.
We can say that ICICI Bharat 22 FOF indirectly invests in the Bharat 22 Index via the Bharat 22 ETF.
Key Features of ICICI Prudential Bharat 22 FOF
|
Launched Date |
June 29, 2018. |
|
Fund Type |
Open-ended Fund of Funds |
|
AUM (Fund size) |
Rs. 2,399.99 Crore |
|
Underlying Asset |
Bharat 22 ETF |
|
Minimum Investment |
Rs. 5,000 (lump sum), Rs. 1,000 (SIP) |
|
Expense ratio |
0.12% |
|
Exit Load |
NIL |
5 Years Return of ICICI Bharat 22 FOF vs Nifty 50 vs Gold
| Investment Period | Return of ICICI Bharat 22 FOF | Nifty 50 | Gold |
|---|---|---|---|
| 1 Year | 36% (Approx) | 24% (Approx) | 15% (Approx) |
| 3 Years CAGR | 22% (Approx) | 16% (Approx) | 8% (Approx) |
| 5 Years CAGR | 10% (Approx) | 12% (Approx) | 9% (Approx) |
The above returns figures are approximate as of July 25.
The ICICI Bharat 22 FOF has seen a sudden increase in its returns as the Govt. PSU stocks perform extraordinarily. The government has also increased investment in infrastructure and the power sector. This gives a boost to this FOF.
What is the advantage of investing in ICICI BHARAT 22 FOF
1. This ICICI Bharat 22 FOF invests almost 100% in Bharat 22 ETF. It is keeping only a minimum AUM amount in cash or cash equivalents. Your investment in Bharat 22 FOF is well diversified across sectors of the Bharat 22 index. It is getting invested in Indian good public sector companies and blue-chip government holdings.
2. The expense ratio is 0.12% ( as of July 2025). It is very low. So, investment is very cost-effective. Additionally, since it is a Mutual fund, investors do not require a D-MAT and a trading account to start investing.
3. By investing in this FOF, investors will enjoy exposure to government-owned Public sector companies and some blue-chip companies.
4. The investor has liquidity for their investment. As a mutual fund, the investor can buy and sell it at any time. No exit load is charged.
Disadvantages of Investing in ICICI Bharat 22 ETF
- Your Investment is indirectly getting invested mainly in Large-cap stocks.
- The performance of FOF is mainly dependent upon the performance of PSU sector companies. Performance is very volatile, and it is not consistent.
- You can expect the investment return to be like large-cap investing. Around 12 to 15%.
- Since it is an FOF, for investing, you do not require a D-MAT & Trading account. But the obvious disadvantage is that you cannot buy and sell, or trade on the stock exchange. Investors can use ICICI Bharat 22 ETF if they want to trade it on the stock exchange.
ICICI Bharat 22 FOF Share Price
Conclusion
“ICICI Bharat 22 FOF” is a mutual fund scheme that invests in the “Bharat 22 ETF”. Bharat 22 ETF follows the Bharat 22 index. So indirectly Bharat 22 FOF is investing in Bharat 22 Index.
ICICI Bharat 22 FOF gives investors the option to invest in government-owned public sector and blue-chip private companies. This FOF is ideal for Investors who wish to invest in diversified government-backed industries. Investors get high liquidity and transparency by investing in Bharat 22 FOF. Returns will be the same as those of the Bharat 22 Index. It will give returns like large-cap investing, approximately. 12 to 15%.
Frequently ask Questions
1. How can I invest in the ICICI Bharat 22 FOF?
Since ICICI Bharat 22 FOF is a mutual fund Scheme. There is no requirement for D-MAT AC and Trading AC for investing. Investors can use stockbroking platforms like GROWW, Zerodha and start investing. Investors can use the ICICI Prudental Mutual Fund’s website or the Office for direct investment. You can select the options of Lump-sum or SIP for investment.
2. Is ICICI BHARAT 22 FOF a good investment option?
Returns given by this fund are quite volatile. Last year’s return is good. But it has given a good return in 3 Yr & 5 Yr. It is a good option for investors who want exposure in government-owned PUC and blue-chip private companies.
3. What is the exit load of BHARAT 22 ETF?
Bharat 22 FOF does not have any Exit load.
4. Should I invest in Bharat 22 ETF or Bharat 22 FOF
Returns given by both are approximately the same. Bharat 22 ETF is for investors who want to buy and sell their units on the stock exchange. Bharat 22 FOF is a simple mutual fund scheme. You can directly invest in it without D-MAT and Trading AC. But you can not trade them on the stock exchange. You will get day-end NAV if you buy and sell Bharat 22 FOF units. Both ETF and FOF will give approximately. return of 12 to 15%. Return of Both will not exceed the returns given by Bharat 22 Index.
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