SBI Nifty Consumption ETF

About SBI Nifty India Consumption ETF

• The SBI Nifty India Consumption ETF is an open-ended mutual fund offered by SBI Mutual Fund House.

• SBI Nifty India Consumption ETF was launched on July 22, 2021.

• The ETF has assets under management (AUM) of ₹13.65 crore as of June 30, 2024.

• The risk level of the SBI Nifty India Consumption ETF is very high.

• Harsh Sethi has been the fund manager of SBI Nifty India Consumption ETF since June 2021.

• The ETF units are listed on both exchanges NSE and BSE, one can invest by buying units through a broker.

• Retail investors can buy all the units directly from the demat account.

Investment Objective & Benchmark

• The fund investment objective is to generate returns that closely correspond to the performance of the underlying index, subject to tracking errors.
• It is benchmarked against the NIFTY India Consumption Total Return Index
• This index represents the performance of the top companies in India's consumption sector.
• The fund offers exposure to a diversified portfolio of companies that cater to the Indian consumer market, including sectors like automobiles, consumer goods, healthcare, media and telecommunications.
• The portfolio includes a mix of large-cap and mid-cap companies that are market leaders in their respective sectors. These companies are expected to benefit from the rising consumption trends in India.
• As an index fund, it carries the risk associated with the underlying index. It is considered suitable for investors with a moderate to high-risk appetite, looking for long-term capital appreciation.
• The index is usually calculated using a free-float market capitalisation method, which means only the shares available for trading are considered in the index calculation.

Asset Allocation & Portfolio Composition

• The ETF holds 99.93% of its fund in equity and 0.07% in cash.
• The company invests in companies across market capitalisations– around, 38.81% in giant, 22.02% in large-cap, 28.73% in mid-cap and 10.43% in small-cap.

Sector-wise fund allocation:

• Consumer Staples: 34.58%
• Automobile: 21.77%
• Server: 14.09%
• Communication: 9.89%
• Consumer Discretionary: 4.47%
• Others: 15.20%

The top 10 Holdings of stocks constitute 62.96% in this ETF’s asset allocation

• ITC: 10.98%
• Bharti Airtel: 9.89%
• Mahindra & Mahindra: 8.73%
• Hindustan Unilever: 7.48%
• Maruti Suzuki India: 5.37%
• Titan Company: 4.47%
• Zomato: 4.39%
• Asian Paints: 4.31%
• Trent: 3.99%
• Bajaj Auto: 3.35%

Since its inception, SBI Nifty India Consumption ETF has given an annualised return of 22.44% to its investors, as of June 30, 2024.

In the last one year, the ETF has delivered a return of 41.67% compared to its benchmarked index which has given a return of 39.19%, as of June 2024.