DSP Nifty Bank ETF

About DSP Nifty PSU Bank ETF

• DSP Nifty PSU Bank ETF is an open-ended value-oriented equity scheme that belongs to DSP Mutual Fund House.
• It includes stocks of top public sector banks of India.
• Anil Ghelani and Diipesh Shah are the fund managers of DSP Nifty PSU Bank ETF.
• DSP Nifty PSU Bank ETF was launched on July 17, 2023.
• Reconstitution of the ETF happens, semi-annually in June and December.
• DSP Nifty PSU Bank ETF has assets under management (AUM) that stood at ₹38.56 crore as of June 30, 2024.
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session.
• The ETF units are listed on both NSE and BSE. One can invest by buying units through a demat account with a registered broker.
• DSP Nifty PSU Bank ETF provides transparency of holdings published daily, so investors always knows exactly what is owned.

Investment Objective & Benchmark

• The investment objective is to provide returns that correspond to the total return of the underlying index, subject to tracking errors.
• It is benchmarked against Nifty PSU Bank TRI designed to reflect the performance of the public sector banks.
• The ETF invests in shares of PSU banks according to their weightage in the Nifty PSU Bank Index. This strategy aims to provide investors with exposure to the performance of PSU banks in the financial markets.
• The net interest margins of public sector banks have shown a growth trend in the last three years and their NPA Is also on decline.
• With rising infrastructure spending and economic activities, the demand for borrowing is likely to expand, positing banks for growth
• DSP Nifty PSU Bank ETF is categorised as a very high-risk investment tool. Investors who like to invest with a long-term wealth creation view.

Asset Allocation & Portfolio Composition

• The fund's asset allocation comprises around 98.86% in equities and 1.14% in cash & cash equivalents.
• The ETF invests assets across market capitalisations– 67.22% in giant-cap, 13.93% in large-cap, 14.87% in mid-cap and the remaining in small-cap companies.
• Top 10 company holdings make up over 96% of the ETF’s asset allocation.

Holdings in stocks of this ETF include:

• State Bank of India: 32.68%
• Bank of Baroda: 16.18%
• Canara Bank: 12.65%
• Punjab National Bank: 11.81%
• Union Bank of India: 8.14%
• Indian Bank: 6.16%
• Bank of India: 4.78%
• Bank of Maharashtra: 2.07%
• Indian Overseas Bank: 1.57%
• Central Bank of India: 1.23%
• UCO Bank: 1.06%
• Punjab & Sind bank: 0.26%

Since its inception, the fund has generated a return of 58.71% against the benchmark index's 56.86% yield during the period.