The ICICI Prudential Life Smallcap 250 Index Fund tracks the Nifty Smallcap 250 Index, which comprises companies ranked between 251st and 500th within the Nifty 500 Index universe. The fund follows a passive, index-mirroring strategy rather than active stock selection.
According to the company, the fund aims to provide diversified exposure to 250 smaller companies across sectors such as financial services, healthcare and capital goods. These firms are typically at relatively earlier stages of growth and may offer long-term expansion potential.
However, the insurer noted that regulatory constraints may at times prevent full replication of index constituents and weights, which could result in tracking error. As an equity-linked product, returns are also subject to market fluctuations.
Data cited by the company showed that the Nifty Smallcap 250 Total Return Index (TRI) delivered 15.36% over one year as of February 27, 2026, with a five-year annualised return of 19.04% and a since-inception return of 15.45%.
The index underlying the fund is reviewed semi-annually in line with its methodology. The new fund will be available as an investment option across select ULIP offerings of the insurer.
