Mr. Sivakasi Manikandan, MFD, MBA (F&M), [MBA, I & FP],
FChFP, CIS, AMFI, CII (London)
Minimum investment Rs. 500: HDFC Nifty PSU Bank ETF
HDFC Mutual Fund (MF) announced the launch of the HDFC Nifty PSU Bank ETF, an open-ended scheme replicating/tracking the Nifty PSU Bank index.
The scheme opened for public subscription and will close on January 23, 2024. The scheme re-opens for continuous sale and repurchase within 5 business days from the date of allotment.
This is an open-ended exchange-traded fund scheme replicating/tracking the Nifty PSU Bank index. This product is suitable for investors seeking
· Returns that are commensurate (before fees and expenses) with the performance of the NIFTY PSU Bank index (TRI), over the long term, subject to tracking error.
· Investment in securities covered by the NIFTY PSU Bank index (TRI).
Main objective of investing in this fund..!
The investment objective of the scheme is to provide investment returns that, before expenses, correspond to the total returns of the securities as represented by the NIFTY PSU Bank index, subject to tracking errors. There is no assurance that the investment objective of the scheme will be achieved.
Investors can minimum Rs. 500 invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Types of Instruments | Indicative allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Securities covered by NIFTY PSU Bank Index (TRI) | 95% | 100% | Very High |
| Debt Securities & Money Market Instruments, units of Debt Schemes of Mutual Funds | 0% | 5% | Low to Medium |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such Nifty bank exchange-traded funds (ETFs). These include:
| Mutual Fund House | Nifty Bank ETF |
| Nippon India Mutual Fund | Nippon India ETF Bank BeES |
| ICICI Prudential Mutual Fund | ICICI Prudential Nifty Bank ETF |
| Kotak Mahindra Mutual Fund | KotakBETF |
| SBI Mutual Fund | SBI-ETF Nifty Bank |
| Axis Mutual Fund | Axis Banking ETF |
| HDFC Mutual Fund | HDFC Banking ETF |
| Aditya Birla Sun Life Mutual Fund | Aditya BSL Banking ETF |
| UTI Mutual Fund | UTI Bank ETF |
| HDFCMutual Fund | HDFCNifty Bank ETF |
| Edelweiss Mutual Fund | Edelweiss ETF-Nifty Bank |
| DSP Mutual Fund | DSP Nifty Bank ETF |
| Source: https://www.tickertape.in/indices/nifty-bank-index-.NSEBANK/etfs | |
The scheme benchmark
The performance of the scheme will be benchmarked against Nifty PSU Bank index (TRI). The above index has been chosen as the benchmark since the scheme will invest in stocks that are constituents of the NIFTY PSU Bank index. Thus, the composition of the aforesaid benchmark is such that it is most suited for comparing the performance of the Scheme.
The Trustee reserves the right to change the benchmark for the performance of the scheme in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (MF) regulations, and other prevailing guidelines, if any by suitable notification to the investors to this effect.
By the investment objective and tracking error definition, the scheme performance will be compared with the total returns of the NIFTY PSU Bank index.
Abhishek Mor and Arun Agarwal are the designated fund managers of this scheme.
For More details and Investing
Mr. Sivakasi Manikandan, MBA (F&M), [MBA, I & FP],
FChFP, CIS, AMFI, CII (London)
Managing Director - AISMONEY
No. 21, MBT Road, (Opp) Indian Bank, Walajapet - 632 513
Ranipet Dt. TN, India.
+ 91 98405 77675
+ 91 96777 66393 (Office)
support@aismoney.com
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