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Investing in India’s Banks Growth Story with Baroda BNP Paribas NIFTY BANK ETF


Investing in India’s Banks Growth Story with Baroda BNP Paribas NIFTY BANK ETF


Baroda BNP Paribas Mutual Fund has announced the launch of the ‘Baroda BNP Paribas NIFTY BANK ETF’, an open-ended scheme that will replicate the performance of the Nifty Bank Total Returns Index, providing investors with a simple and cost-effective way to invest in India’s high-impact sector, namely banking. The fund will open for subscription on May 31st, 2024, and the Exchange Traded Fund’s (ETF) units will be issued in dematerialized form and will be available for trading on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Exchange Traded Funds (ETFs) are mutual fund schemes that track the performance of an index or commodity. Listed on stock exchanges, ETFs can be bought and sold like shares. These funds are simple to understand, with no active fund manager involvement, leading to lower costs.

Commenting on the NFO launch, Suresh Soni, CEO, Baroda BNP Paribas AMC, said, ” We are excited to offer the Baroda BNP Paribas NIFTY BANK ETF as a new investment opportunity that provides investors with a simple, cost-effective way to gain exposure to the Indian banking sector, which plays a pivotal role in shaping the India growth story. The pivotal Indian banking sector has shown robust growth and is well placed to continue its upward trajectory as a leading sector for our economy. “

The NIFTY BANK Index includes 12 of the largest banks listed on the National Stock Exchange. The index ensures diversification by limiting the weight of a single stock to 33% and the top three stocks to 62%. The index is updated twice a year, in March and September, and only includes stocks that are part of the Futures & Options segment.

The NIFTY BANK Index has shown strong performance, with a 15% annual growth rate over the last 10 years and 17% p.a. over the last 15 years (Data as on 30th April 2024). It has delivered positive returns in more than 75% of calendar years, outperforming the NIFTY 50 in 14 out of the last 22 calendar years (Data as on 30th April 2024. This data is for information and understanding purpose only. Past performance may or may not be sustained in future). The ETF is ideal for investors aiming for long-term growth and capital appreciation, as banks are the driving force for India’s economic growth.


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