ICICI Prudential Mutual Fund launched Nifty Financial Services Ex-Bank Exchange-Traded Fund (ETF) on November 16. The new fund offer will remain open for subscription till November 25.
The scheme’s benchmark is Nifty Financial Services Ex-Bank TRI. The fund scheme will be managed by Kayzad Eghlim and Nishit Patel. During the NFO period, the minimum investment one has to make is of ₹1,000.
While giving a rationale of investing in financial services, the fund house stated that the sector is witnessing a boom with increased participation.
“Financial services have given a huge contribution in helping Indian economy become the fastest growing economy of the world,” the fund house said in a statement.
The fund house also underscored the fact that Nifty Financial Services Ex-Bank has outperformed both Nifty 50 index and Nifty Bank index over last 10 years. Also, the sector has grown across several parameters such as AUM of mutual funds by 11 percent, NBFC public funds by 9 percent, total premium underwritten of insurance firms by 10 percent and demat accounts of depositories by 36 percent.
About the portfolio:
The companies in which the scheme will invest include non-banking financial companies such as asset finance companies, investment firms, loan providers, life insurers, non-life insurers and others such as brokerages, investment banking, mutual funds, wealth management firms.
The scheme will track the Nifty Financial Services Ex-Bank index and therefore, will invest in the stocks of financial services sector except banks. The corpus will be allocated to the stocks of 30 largest stocks from the financial service sector that form part of Nifty 500 index universe. The index is rebalanced on a semi-annual basis. Stock weights are capped at 25 percent.
Top 10 index constituents are HDFC, Bajaj Finance, Bajaj Finserv, SBI Life Insurance, HDFC Life Insurance, Bajaj Holdings and Investment, ICICI Lombard General Insurance, Cholamandalam Investment and Finance Company, Shriram Transport and SBI Card and Payment Services.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.)
