A Comprehensive Guide to ETF Investing in India

  • Home
  • Banking
  • A Comprehensive Guide to ETF Investing in India
A Comprehensive Guide to ETF Investing in India
  • By Ankita Pal
  • 13th January, 2024
  • Banking

Introduction: A Gateway to Potential Returns

In a move that’s sure to catch the eye of savvy investors, HDFC Mutual Fund has proudly introduced the HDFC Nifty PSU Bank ETF. This open-ended scheme mirrors the Nifty PSU Bank index, offering a unique investment avenue.

Key Dates: Mark Your Calendar!

Embarking on its journey, the scheme opened its doors for public subscription on January 12, 2024, with the subscription window closing on January 23, 2024. Following the allotment, the scheme re-opens for continuous sale and repurchase within five business days.

Understanding the Fund: What Sets It Apart?

What kind of a mutual fund scheme is this?

This is no ordinary scheme; it’s an open-ended exchange-traded fund (ETF) tracking the Nifty PSU Bank index. Tailored for investors seeking returns aligned with the NIFTY PSU Bank index’s performance over the long term, the scheme prioritizes tracking accuracy.

Investment Objective: What Drives the Fund?

The primary aim is clear: to provide returns that correspond to the total returns of securities represented by the NIFTY PSU Bank index. While it aspires to achieve this objective, it’s essential to note that investment outcomes aren’t guaranteed.

Investment Options: How to Get Started?

Investing is a breeze with a minimum investment of ₹500 per plan/option, allowing flexibility for investors. There’s no upper limit, empowering investors to tailor their investment to their financial goals.

Asset Allocation: A Strategic Approach

Under normal circumstances, the scheme allocates its assets thoughtfully, ensuring a balanced and diversified portfolio.

Benchmarking Performance: Setting the Standard

The scheme’s performance is meticulously benchmarked against the Nifty PSU Bank index. This index is chosen because it aligns with the scheme’s investment in stocks that constitute the NIFTY PSU Bank index.

Adaptability in Benchmarking: A Dynamic Approach

The trustee holds the authority to modify the benchmark, aligning it with investment objectives and prevailing guidelines, ensuring the scheme’s relevance and effectiveness.

Entry and Exit: No Hidden Costs

No entry load implies investors incur no fees when entering the scheme. Equally enticing, the exit load is nil, offering a cost-efficient investment avenue.

Management Team: Steering the Ship

In capable hands, Abhishek Mor and Arun Agarwal lead as the designated fund managers, steering the scheme toward success.

Risk Assessment: Understanding the Landscape

Inherent Risk: A Cautionary Note

The scheme involves “Very High Risk,” as disclosed in the Scheme Information Document. It’s tailored for investors acknowledging the risk, underlining the importance of consulting financial advisors for suitability.

Conclusion: Seizing the Opportunity

In the dynamic world of investments, HDFC Nifty PSU Bank ETF emerges as an intriguing prospect. Investors looking for potential returns and a well-managed portfolio might find this scheme aligns with their financial goals.

FAQs: Unveiling Clarity

  1. Is there a minimum investment requirement?
    • Yes, the scheme welcomes investors with a minimum investment of ₹500 per plan/option.
  2. What makes this scheme stand out?
    • Its unique proposition lies in mirroring the Nifty PSU Bank index, providing investors with returns linked to its performance.
  3. Are there any hidden costs for investors?
    • None. The scheme boasts no entry or exit loads, ensuring a transparent and cost-effective investment.
  4. Who manages the scheme?
    • Abhishek Mor and Arun Agarwal, seasoned fund managers, steer the scheme toward success.
  5. What risk level does the scheme carry?
    • The scheme carries a “Very High Risk” tag, emphasizing the importance of investor understanding and consultation with financial advisors.

Leave a Reply

Your email address will not be published.