InvestorQ : Can you throw some light on the HDFC Banking ETF NFO that is opening this week?
Mitali Bhutta made post

Can you throw some light on the HDFC Banking ETF NFO that is opening this week?

Answer
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Dawn Cherian answered.
1 month ago


The new fund offering or NFO of HDFC Mutual Fund’s Banking ETF will open this week till 14 August, when the ETF will close. The fund proposes to invest almost its entire corpus in the components of the Nifty Bank Index and will have a TRI benchmarking.

Like in the case of all ETFs, the units of HDFC Banking ETF will be listed as an Exchange Traded Fund on the NSE as well as on the BSE. Bank Nifty has been one of the star performers of the last 3 years but has spluttered in the last4 months.

This ETF will give investors access to a portfolio of the most liquid banking stocks in India from private and PSU space with a minimum investment of as low as Rs.5,000 in the NFO. Post the NFO, the ETF can be traded with your trading account and demat account.

Main components of the Nifty Bank Index are new private banks - HDFC Bank, ICICI Bank, Kotak Bank, Axis, IndusInd, RBL, IDFC First Bank and Bandhan. PSU banks in the index include SBI, BOB and PNB. It also includes one old private bank in the form of Federal Bank.