This Nippon India Mutual Fund returns 125% in 1-yr; SBI, BoB, Canara Bank stocks draw maximum allocation

Public sector banks have outperformed markets in the past one year. Most of the PSU Banks have shown unprecedented rally in the recent times. The jump in prices of these banks could be gauged from the fact that Nifty PSU Bank Index has surged 119% in the last one year as on October 28, 2021. This has also helped equity linked mutual funds clock massive return in one year. 

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One such fund to benefit most from the PSU Bank rally is from Nippon India Mutual Fund. Nippon India ETF PSU Bank from Nippon India Mutual fund has clocked 126.3% return in one year till October 28, 2021, as per stock edge, an app to Analyse NSE, BSE data. This is an equity linked scheme, which has 99.9% holding in domestic equities, while only 0.1% in cash and cash equivalents and net assets.  

Source: Stock Edge

Incepted on 25th October 2007, this fund has overall AUM (Asset Under Management) of 265.86 crore as per September quarter details updated on Stock Edge. At 32.05 NAV, the market capitalization of this MF stands at 1,4550. 28 crore till October 22.  

Since the fund is invested in equities, the fund indicator puts it in very high-risk fund category and envisages to provide returns that, before expenses, closely corresponds to the total returns of the securities as represented by the CNX PSU Bank Index, says the Nippon India ETF PSU Bank.    

Top 5 stocks Nippon India ETF PSU Bank is invested in  
As the name suggests, all of its funding is directed towards PSU Banks.  The fund has allocated maximum 30.3% of its total capital in State Bank of India (SBI Shares), 17.2% contribution of this fund has been made in Bank of Baroda. Next, it has parked money in Canara Bank (13.9%), Punjab National Bank (13.5%) and 5.9 % in Bank of India shares. This allocation has been as per quarter ended September 2021.