HDFC Mutual Fund's Bank ETF NFO explained in 10 points1 min read . Updated: 10 Aug 2020, 01:54 PM IST
- The NFO of HDFC Banking ETF will close on August 14
- HDFC Banking ETF will be managed by Krishan Kumar Daga
HDFC Mutual Fund has launched the New Fund Offer (NFO) of HDFC Banking ETF, an open ended passively managed exchange traded fund (ETF) which endeavors to track and provide similar returns to its benchmark- NIFTY Bank Index. The scheme will invest in NIFTY Bank Index companies, in the same proportion as the underlying index.
Here are the 10 key points to know about the NFO:
1) The NFO of HDFC Banking ETF opens today and will close on August 14.
2) The scheme's portfolio will invest 95% to 100% in securities covered by NIFTY Bank Index and 0 to 5% in debt securities & money market instruments.
3) HDFC Banking ETF will be benchmarked against NIFTY Bank Index (Total Returns Index)
4) The scheme will be managed by Krishan Kumar Daga.
5) Minimum application amount during the NFO period is ₹5,000.
6) The units of HDFC Banking ETF will be listed as an Exchange Traded Fund on NSE and /or BSE.
7) The NIFTY Bank Index was launched in September 2003. NIFTY Bank Index has a record of over 20 years.
8) Nifty Bank Index tracks the performance of 12 most liquid banking stocks comprising both private and PSU banks from large and midcap companies in the NIFTY 500 Index.
9) The 12 stocks in the index include- HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, IndusInd Bank, Bandhan Bank, Federal Bank, RBL Bank, Bank of Baroda, IDFC First Bank and Punjab National Bank.
10) Units of HDFC Bank ETF will be available in Dematerialized (electronic) form only.