If you’re looking for an opportunity to invest in public sector banks, Mirae Asset Mutual Fund’s latest offering could be just what you need. The Mirae Asset Nifty PSU Bank ETF is a newly launched scheme that aims to provide investors with focused exposure to government-owned banks. With the new fund offer (NFO) opening on September 24, 2024, and closing on September 30, 2024, this ETF is designed to take advantage of the rising stock prices of public sector banks.
Key Details of the NFO
- Opening Date: September 24, 2024
- Closing Date: September 30, 2024
- Category: Equity – Sectoral Banking
- Minimum Investment: ₹5,000 and in multiples of ₹1 thereafter
- Lock-in Period: None
- Exit Load: Nil
- Benchmark: Nifty PSU Bank TRI
The ETF will track the performance of the Nifty PSU Bank Index, which includes top public sector banks like SBI, Bank of Baroda, and Canara Bank.
Why Invest in the PSU Bank ETF?
Public sector banks have seen significant improvements in asset quality and profitability over the last few years. This makes them a hot topic in the investment world. The Nifty PSU Bank Index has surged by 35% this year alone and over 55% in the past year, making it an attractive option for investors looking for growth potential.
The Mirae Asset Nifty PSU Bank ETF allows you to invest in a basket of top-performing public sector banks, offering you diversified exposure to this booming sector. With no lock-in period or exit load, this ETF gives you flexibility along with growth potential.
Benefits of the PSU Bank ETF
- Strong Growth Potential: PSU banks have shown significant recovery and growth, largely due to improved asset quality and profitability.
- Lower Risk: Government-owned banks are generally considered safer investments compared to private sector counterparts, and this ETF focuses on these stable entities.
- Focused Exposure: Unlike broader bank indices, which include both private and public banks, this ETF targets only public sector banks, offering a more focused investment.
- Cost-Effective: With relatively low costs, the ETF provides an affordable way to gain exposure to the PSU banking sector.
- Key Role in India’s Growth: Public sector banks are crucial to India’s economic growth, especially in rural and semi-urban areas.
PSU Bank Index Components
The ETF tracks the Nifty PSU Bank Index, which includes the following public sector banks:
- State Bank of India (SBI)
- Bank of Baroda
- Canara Bank
- Punjab National Bank (PNB)
- Union Bank of India
- Indian Bank
- Bank of India
- Bank of Maharashtra
- Indian Overseas Bank
- Central Bank of India
- UCO Bank
- Punjab & Sind Bank
These banks have been key drivers of economic growth in India and are well-positioned to benefit from future developments in the financial sector.
