BSE Scrip Code: 543666

NSE Symbol: HDFCPVTBAN

An open ended scheme replicating/tracking NIFTY Private Bank Index (TRI)

Investment Objective: The investment objective of the Scheme is to provide investment returns that, before expenses, correspond to the total returns of the Securities as represented by the NIFTY Private Bank Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.

What is the Nifty Private Bank Index?

The Nifty Private Bank Index represents the performance of private banks in India. It comprises a basket of private bank stocks listed on the National Stock Exchange (NSE). The index provides investors with exposure to the private banking sector, which plays a significant role in the Indian financial industry.

Why HDFC Nifty Private Bank ETF?

• Returns Aligned with Nifty Private Bank TRI: The ETF aims to replicate the performance of the Nifty Private Bank Total Return Index (TRI), allowing investors to potentially earn returns similar to the Nifty Private Bank index, which represents the performance of private banks in India.
• Exposure to Multiple Private Banks in a Cost-Effective Manner: The HDFC Nifty Private Bank ETF offers a cost-effective investment solution for investors seeking exposure to the private banking sector. By investing in this ETF, investors can gain exposure to multiple private banks within a single investment.
• Simple and Effective Investment Approach: The ETF offers an investment option aimed at long-term wealth creation, allowing investors to conveniently participate in the performance of the private banking sector in India.

Additional Benefits of the HDFC Nifty Private Bank ETF:

• Private Banks' Market Share and Profitability: Private banks continue to gain market share across loans and deposits and are generally considered to have higher profitability than the overall banking sector, indicating their strong position in the industry.
• Stronger Capital Ratios and ROEs: Private banks are considered to have higher capital ratios and Return on Equity (ROE) and lower Gross Non-Performing Asset (GNPA) ratios compared to sector peers, indicating their robust financial health.

Who should buy the HDFC Nifty Private Bank ETF?

The HDFC Nifty Private Bank ETF is suitable for investors who are interested in gaining exposure to private banks in India. It may be particularly suitable for investors who:

• Want to invest in multiple private banks through a single investment
• Prefer a low-cost investment option
• Have a long-term investment horizon aimed at wealth creation

What is the ideal investment time horizon for the HDFC Nifty Private Bank ETF?

The HDFC Nifty Private Bank ETF is suitable for investors with a long-term investment horizon.

How to buy the HDFC Nifty Private Bank ETF?

A. On the Stock Exchange: Investors can buy HDFC Nifty Private Bank ETF units through a stockbroker on the Stock Exchange(s) i.e. NSE/BSE.

B. Directly with the Fund: Market Makers/Large Investors:

On an ongoing basis, Market Makers and Large Investors* may approach the Fund directly for subscription/redemption of units of the ETF at the Intra-Day NAV in multiples of Creation Unit size. *The minimum application amount for Large Investors shall be Rs. 25 Crores and in multiples of Creation Unit Size^.

^ Not Applicable till February 28, 2025 for a) Schemes managed by Employee Provident Fund Organisation, India and b) Recognised Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961.

 

For current constituents of NIFTY Private Bank Index (TRI) please click here.

For changes to Index constituents, please click here.

For list of Market Makers, click here