The New Fund Offer (NFO) opened on July 13 and will close on July 15.
The ETF will track the BSE Top 10 Banks Total Return Index (TRI), which comprises the 10 largest banks within the BSE 500 universe based on free-float market capitalisation. As an index fund, it aims to mirror the performance of the underlying index rather than actively selecting stocks.
The minimum investment during the NFO is ₹500 per application and in multiples of ₹1 thereafter. The scheme does not levy an entry or exit load.
Once listed on the stock exchanges, units of the ETF can be bought and sold during market hours. The underlying index is rebalanced every six months. Individual stock weights are capped at 33%, while the combined weight of the top three constituents is capped at 63%.
Commenting on the launch, Ganesh Mohan, Managing Director of Bajaj Asset Management, said the ETF is intended to provide investors with a passive, exchange-traded vehicle to gain exposure to India’s banking sector.
Nimesh Chandan, Chief Investment Officer at Bajaj Asset Management, said the BSE Top 10 Banks Index follows a rules-based methodology and that the ETF offers investors access to the segment through an exchange-traded structure.
The scheme will be managed by Ilesh Savla, Senior Equity Dealer and Fund Manager at Bajaj Asset Management Ltd. It has been classified as a “Very High” risk investment under the riskometer.
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