The Nippon India ETF Nifty PSU Bank BeES, managed by Nippon Life India Asset Management Limited, is a passive equity ETF aimed at tracking the Nifty PSU Bank TRI through direct index replication.

This ETF employs a strategy that mirrors the Nifty PSU Bank Index, ensuring proportional investment in its constituent securities, thereby maximizing tracking efficiency with a minimal tracking error of 0.09%.

The portfolio is heavily concentrated in the banking sector, with State Bank of India leading at 32.4%, followed by Bank of Baroda and Canara Bank, indicating significant sector exposure and potential concentration risk.

Over the past year, the fund has delivered an impressive return of 28.0%, with a three-year CAGR of 27.5%, showcasing strong performance consistency in a volatile market environment.

With an AUM of ₹3663.2 Cr and an expense ratio of 0.49%, the fund balances operational efficiency with accessibility, managed by Jitendra Tolani, who brings 19 years of experience to the table.