The Kotak Nifty PSU Bank ETF, managed by Kotak Mahindra Asset Management Company Limited, aims to replicate the Nifty PSU Bank Index's returns while maintaining market cap weighted exposure to public sector banks.

With a tracking error of just 0.09%, the ETF effectively mirrors its benchmark, the Nifty PSU Bank Index TRI, ensuring minimal deviation in performance relative to the index.

The fund's concentrated portfolio, primarily in banks, features significant holdings like State Bank of India at 34.16%, highlighting potential concentration risk while achieving 99.99% industry allocation in banks.

Performance metrics reveal impressive growth, with a 1-year return of 9.3%, a 3-year CAGR of 35.9%, and a 5-year CAGR of 42.6%, showcasing strong historical performance across different periods.

With a fund size of ₹1574.8 Cr and an expense ratio of 0.49%, the ETF remains accessible for investors, supported by experienced fund managers Mr. Devender Singhal and Mr. Satish Dondapati.