Nippon India ETF Nifty PSU Bank BeES

The Nippon India ETF Nifty PSU Bank BeES, managed by Nippon Life India Asset Management Limited, is an open-ended fund that passively tracks the Nifty PSU Bank TRI, focusing on PSU banks.

This fund employs a replication strategy by investing in securities that mirror the Nifty PSU Bank Index, ensuring a close alignment with benchmark performance through precise allocation.

The portfolio is heavily concentrated in the banking sector, with top holdings like State Bank of India at 34.15%, reflecting a high sector allocation of 99.57%, indicating potential concentration risk.

Performance metrics are impressive, with a 1Y return of +8.6%, 3Y CAGR at 35.6%, and 5Y CAGR at 42.4%, showcasing strong historical returns relative to its benchmark.

With an AUM of ₹2880.2 Cr, an expense ratio of 0.49%, and a low tracking error of 0.09%, the fund presents an efficient investment vehicle in the PSU banking space.