Tata AMC - NPBET ETF

About Tata Nifty Private Bank ETF-NPBET

• Tata Nifty Private Bank ETF is an open-ended exchange-traded fund offered by Tata Mutual Fund House.
• The ETF was launched on August 30, 2019.
• As of June 30, 2024, the scheme's total assets under management stood at ₹ 9.45 crore.
• Kapil Menon and Sailesh Jain are the fund managers.
• Investment in Tata Nifty Private Bank ETF can be made just like securities through a demat account with a broker
• The ETF units can be bought and sold during the usual trading window.

Investment Objective & Benchmark

• Tata Nifty Private Bank ETF aims to offer returns that before expenses correspond to the earnings of the securities in the underlying index.
• The scheme is benchmarked against the Nifty Private Bank index, comprising of stock of the leading private sector banks in India.
• The borrowing demand has seen a surge over the past few years thanks to rapid growth in the Indian economy. The trend is likely to continue with private banks emerging as an option to meet this growing demand.
• The financial sector has shown a stable growth trajectory even amidst a slowdown in the market.
• The ETF is a cost-effective way to invest in multiple banking stocks. It diversifies its fund to multiple top private banking stocks, limiting the risk involved with exposure to an individual stock.
• The ETF is suited for investors looking at a long-term goal and a passive investment strategy. The Nifty Private Bank Total Return Index (TRI) has delivered a cumulative return of over 50% in the past five years as of June 30, 2024.

Asset Allocation & Portfolio Composition

The ETF's asset allocation consists of 99.56% in equities and the remaining 0.44% in cash.

• The equity composition is made up of stocks from the financial sector.
• Tata Nifty Private Bank ETF has invested majorly in giant and large companies, allocating them over 80% of the available funds.
• The top 10 holding companies constitute 99.56% of the allocated assets.

Here's a list of 10 holding companies Tata Nifty Private Bank ETF as of June 30, 2024:

• HDFC Bank Ltd-27%
• ICICI Bank Ltd-25.46%
• Axis Bank Ltd-11.29%
• IndusInd Bank Ltd-8.93%
• Kotak Mahindra Bank Ltd- 9.36%
• Federal Bank Ltd- 5.97%
• IDFC First Bank Ltd-4.88%
• Bandhan Bank Ltd- 2.51%
• RBL Bank Ltd- 2.36%
• City Union Bank Ltd- 1.8%

Tata Nifty Private Bank ETF has offered an annualised return of 14.43% over a year against the benchmark returns of 14.7% as of June 30, 2024.

The ETF has delivered a CAGR of 12.4% since its inception.