2 Mutual Funds With 30% Net Asset Investments In SBI

Investors favoured sectoral/thematic mutual fund schemes in February despite the markets' continued turbulence. Sectoral fund- Financial has seen growth over the years, particularly Nifty PSU banks. Sectoral fund investment strategies follow stocks of various businesses based on a theme or industry. Here we have picked two ETFs that have 30% net asset holdings in India's largest bank State Bank of India (SBI). The benchmark of these two funds is Nifty PSU Bank.

Nippon India ETF Nifty PSU Bank BeES

Nippon India ETF Nifty PSU Bank BeES is an Equity-Traded Fund (ETF) from the house of Nippon India Mutual Fund, launched on 25 October 2007. The ETF has 99.95% exposure to equity in the financial sector. The remaining 0.05% are in cash & cash equivalent instruments. Its assets under management as on 28 February 2023 are Rs 1,501 crore.

Among its top holdings, State Bank of India has the most around 29.99% followed by Bank of Baroda at 20.99%, Canara Bank at 12.86%, Punjab National bank at 12.60% and Union Bank of India at 7.11%. Other holdings include the Indian Bank, Bank of India, India Overseas Bank, Central Bank of India, Bank of Maharashtra, UCO Bank and Punjab & Sind Bank.

It has given over 30% annualised return in the past 1 year and 3 years on lumpsum investment. Its expense ratio is 0.49% as on 28 February 2023. To begin investing in this fund, the minimum investment amount required is Rs 10,000.

Kotak Nifty PSU Bank ETF

Kotak Nifty PSU Bank ETF is also an Equity-Traded Fund (ETF) launched on 8 November 2007. It is an open-ended high-risk ETF from the house of Kotak Mahindra Mutual Fund. The fund has allocated 99.97% of assets in equity in the financial sector, whereas, the remaining 0.03% is in cash and cash equivalent instruments. As on February 28, 2023, its assets under management (AUM) are Rs 1,269 crore.

The fund has a maximum, 30% holdings in the State Bank of India (SBI) followed by Bank of Baroda (20.29%), Canara Bank (12.86%), Punjab National bank (12.60%) and Union Bank of India (7.12%). Indian Bank, Bank of India, India Overseas Bank, Central Bank of India, Bank of Maharashtra, UCO Bank and Punjab & Sind Bank are other holdings of the fund.

On lump sum investments over the last year and three years, the fund has delivered over 30% annualized returns. As on February 28, 2023, its expense ratio is 0.49%. The minimum investment amount to start investments in this fund is Rs 10,000.

Disclaimer - Mutual fund investments are subject to market risk. Read all scheme-related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.