Index Mutual Fund: In a bid to provide returns that closely correspond to the total returns of the securities as represented by the Nifty Private Bank index, subject to tracking error, Tata Mutual Fund has launched Tata Nifty Private Bank Exchange Traded Fund (ETF). The index mutual fund will be an open-ended ETF replicating or tracking the Nifty Private Bank Index. NFO has opened today on 16th August 2019 and it would end on 29th August 2019. The ETFs allows an investor to make a low-cost passively managed investment that is a suitable complement to actively managed funds.

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Speaking on the launch Sailesh Jain, Fund Manager at Tata Nifty Private Bank Exchange Traded Fund said, "I believe that banks have contributed heavily to the growth of the Indian economy and provided funding for business expansion. Private Banks fare better than PSU Banks on asset quality, interest and non-interest income, profitability and market share. Investing in Tata Nifty Private Bank ETF can give you a portfolio of select private bank stocks and allow investors to tap into the growth of Indian Private Retail and Corporate Banking Sector."

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Jain went on to add, "There is an increasing awareness and demand in the passive space in India. Investors need not restrict themselves in choosing between active and passive investment strategies. They can benefit by adding this offering as a complementary strategy along with their active exposure for meeting their goals in an effective manner."

Nifty Private Bank Index includes 10 Private Banks that fall within the top 800 companies based on both average daily turnover and average daily full market capitalization for the last six months. The fund is dominated by the five largest private banks by market capitalization that makes up 90 per cent of the index.