Kotak Nifty PSU Bank ETF and Nippon India ETF Nifty PSU Bank BeES had the highest exposure in public sector banks. They had higher exposure to the State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank, and Union Bank of India. PSU bank stocks have made gains in the last one year. The share price of State Bank of India rose by around 25.19%. The share of Bank of Baroda rose significantly by 86.26%. The share of Punjab National Bank rose by 65.20%. Bank of India rose by 62.4% in the one-year horizon.
There are around 33 passively managed banking schemes that have completed one year in the market. Apart from these two schemes that have topped the category, the other schemes offered returns ranging 21.97%-34.54% in the same time period.
Passively-managed banking schemes topped the return chart in the one-year horizon and offered an average return of 32.30%, compared to 33.06% by the benchmarks. Passively-managed banking schemes are benchmarked against Nifty Financial Services – TRI, NIFTY BANK – TRI, S&P BSE BANKEX – TRI, Nifty Private Bank – TRI, Nifty Financial Services Ex-Bank – TRI, NIFTY PSU BANK – TRI, and NIFTY 50 – TRI.
The two passively managed banking schemes were the topper in nine-month, two, and three-year horizons as well. Kotak Nifty PSU Bank ETF offered 38.90%, 33.62%, and 54.21% returns in nine-month, two, and three-year horizons respectively. Nippon India ETF Nifty PSU Bank BeES offered 38.94%, 33.72%, and 33.72% returns in nine-month, two, and three years horizons respectively.
Note, the above exercise is not a recommendation. This is just to show the toppers in the passively-managed banking schemes. One should not invest or redeem their investments based on the above exercise. Consider your risk appetite, investment horizon, and goal. Past performance does not guarantee future performance.
