HDFC Nifty Private Bank ETF

About HDFC NIFTY Private Bank ETF

• HDFC NIFTY Private Bank ETF is an open-ended equity scheme offered by the HDFC Mutual Fund House.
• The ETF includes stocks from the top private banks in India. It offers investors exposure to the private banking sector.
• The scheme fund was launched on November 16, 2022.
• The total assets under management (AUM) in this ETF was ₹327.7 crores as of June 30, 2024.
• Abhishek Mor has been the fund manager for the ETF since its inception.
• Retail investors can buy HDFC Nifty Private Bank ETF units on the stock exchange using their demat accounts registered with a recognised stockbroker.

Investment Objective & Benchmark

• HDFC NIFTY Private Bank ETF aims to offer returns that replicate the returns of the underlying index.
• The scheme is benchmarked against the Nifty Private Bank Index.
• Private banks have been at the forefront of meeting the surge of loan requirements. Private lenders offer higher profitability than the overall banking sector, indicating their strong position in the industry.
• The ETF aims to track and reflect the performance of the Nifty Private Bank Total Return Index (TRI), which has yielded a 52% return over the past 5 years
• The scheme is a cost-effective option to invest in multiple private banks within a single investment.
• DFC Nifty Private Bank ETF offers an investment option aimed at long-term wealth creation, allowing investors to conveniently participate in the performance of the private banking sector in India.

Asset Allocation & Portfolio Composition

• HDFC NIFTY Private Bank ETF allocates 99.57% of the funds to equities and the remaining 0.43% to debts and cash & cash equivalents.
• Following a growth-oriented style of investing, the ETF invests across market capitalisations – around 67.22% in giant-cap, 13.93% in large-cap companies, 14.87% in mid-cap and 3.98% in small-cap companies.
• The top 10 equity holdings in HDFC NIFTY Private Bank ETF constituted 99.57% of the assets as of May 2024.

Top contributors to HDFC Nifty Private Bank ETF with their percentage share:

• HDFC Bank Ltd.: 25.83%
• ICICI Bank Ltd.: 25.81%
• Indusind Bank Ltd.: 10.54%
• Axis Bank Ltd.: 10.40%
• Kotak Mahindra Bank Limited: 10.31%
• The Federal Bank Ltd.: 5.63%
• IDFC First Bank Limited: 4.99%
• Bandhan Bank Ltd.: 2.47%
• RBL Bank Ltd.: 2.41%
• City Union Bank Ltd.: 1.62%

HDFC Nifty Private Bank ETF has yielded an 8.44% return in one year, as of May 31, 2024.
The ETF has clocked a CAGR of 8.1 % on investment since its inception.