The Kotak Nifty PSU Bank ETF, managed by Kotak Mahindra Asset Management Company, aims to mirror the performance of the Nifty PSU Bank Index, providing market cap-weighted exposure to public sector banks.

Utilizing a replication strategy, the ETF closely tracks the Nifty PSU Bank Index TRI, ensuring minimal tracking error of just 0.09%, which enhances its efficiency in reflecting index returns.

The portfolio exhibits significant concentration with top holdings including State Bank of India at 34.2% and Bank of Baroda at 14.7%, indicating potential risks due to limited diversification within the banking sector.

In terms of performance, the ETF has demonstrated impressive returns, with a 1-year change of 28.7% and a 3-year CAGR of 27.5%, showcasing its resilience in fluctuating market conditions.

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