The Banking sector in the last few quarters has seen certain improvement in credit growth, net interest margins & reduction in non-performing assets. Despite recent increase in stock prices, valuations are relatively favourable.
Economies cannot flourish without banks. Banking has been in existence since the 15th century and the need for banks has only expanded with modernisation and globalisation.
Nifty Bank index has earned 19.2%2 CAGR return Y-o-Y in the last 23 years and outperformed the Nifty 50 Index 98%2 of the times on a 10-year rolling return basis.
DSP Nifty Bank ETF will invest in the 12 bank stocks of the Nifty Bank Index that constitute 78%3 Private and 22%3 Public banks, providing an optimal diversification of the banking portfolio.
Banks currently contribute 24%1 in the Nifty 50 index profits- the highest profit pool held by a single sector.
Those looking for low-cost access to leading bank stocks.
Those wanting to seek benefit from a leading sector powering the Indian economy.
Those with an investment horizon of 7+ years.
Those who believe in no-bias, passive investing.
Expect fluctuations and possibly short-term negative returns, especially during periods of market volatility.
Being a single sector-based fund, DSP Nifty Bank ETF will come with very high sector-specific risk.
This investment will deliver returns in line with the benchmark index returns subject to tracking error.
You need a trading account with a broker/ sub-broker
You also need a Demat account for holding the ETF units
What is an ETF?
Exchange Traded Funds, or ETFs, are a type of funds/schemes that track an index, sector, commodities, or other assets, but which can be purchased or sold on the stock exchange like any regular stock. They combine the features and potential benefits of stocks or bonds and mutual funds. Like individual stocks, ETFs can be traded throughout the day at real time prices that change based on supply and demand.
What are the benefits of an ETF?
Simplicity - Buying / Selling ETFs is as simple as buying / selling any other stock on the exchange.
Realtime Trading - ETFs allow investors to take benefit of intraday movements in the market, which is not possible with other open-ended Funds.
Low cost - The cost of investing in ETFs is generally lower than an active fund invested in the same market of assets.
Seamless trading - Existing investors insulated from bearing transaction costs of other investors coming in or going out.
Transparency - Holdings published daily, so investor always knows exactly what is owned.
Who is the fund manager for the fund?
Mr. Anil Ghelani and Mr. Diipesh Shah will be the fund managers of the DSP NIFTY Bank ETF.
1Source: Bloomberg, DSP, Data as on Nov 30, 2022.
2Source - MFIE. Data as on Nov 30, 2022 compared with value of Rs.100 invested on Jan 01, 2000. These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of this scheme.
3Source - NSE. Data as on 30 Nov 2022.
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
During the NFO period, you can invest as low as Rs. 5,000/- and in multiples of Re.1/-. Note that on allotment (if you invest during the NFO period), units will be issued at a premium approximately equal to the difference between face value and Allotment Price during the NFO and at NAV based prices on an on-going basis. There is no assurance of any returns/capital protection/capital guarantee to the investors in this scheme of DSP Mutual Fund.
|
This product is suitable for investor who are seeking*
*Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. |
|
||||||||
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Limited.
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE'.
