The Hindu Business Line : Kotak PSU Bank ETF makes debut on NSE

Mumbai, Nov. 16 Kotak PSU Bank Exchange Traded Fund, an open ended exchange traded fund, today slipped 9.77 per cent from its opening price on the first day of its trading on NSE.

It opened at Rs 349.9 and closed at Rs 315.71. During intraday, it touched a high of Rs 355 and a low of Rs 275. The total quantity traded was 6,406 and made a turnover of Rs 21.8 lakh. The fund will be benchmarked against CNX PSU Bank Index. The scheme has to invest in securities that comprise the CNX PSU Bank Index. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.

The Kotak PSU Bank ETF would invest not less than 90 per cent of its amount in stocks comprising the underlying index and will attempt to track the benchmark index.

The scheme will attempt to retain the least amount of cash and will try to avoid investments in debt or money market instruments, said its offer document. The objective of the fund is to provide returns that closely correspond to total returns of CNX PSU Bank Index, subject to tracking errors.

Benchmark scheme

This is the second ETF based on PSU Bank. Earlier, Benchmark Mutual Fund launched PSU bank Benchmark Exchange Traded Scheme (PSU Bank BeES). The PSU Bank BeES, which got listed recently, has got a good response from the market. It has collected around Rs 100 crore. It closed today at Rs 309.28, down 0.84 per cent while 5,392 units got traded. It’s NAV stood at Rs 306.6925 on November 15 against Rs 282.1239 on November 1. This is the tenth ETF to be launched on the NSE. ETF specialist Benchmark has five schemes – Nifty BeES, Bank BeES, Gold BeES, Junior Nifty BeES and Liquid BeES. UTI Mutual Fund has two schemes – UTI SUNDER – based on Nifty index, and GOLDShare, tracking gold movements.Apart from this, Kotak Mutual Fund has Kotak GOLD

SPIcE is the first Exchange Traded Fund on SENSEX that was launched by ICICI Prudential Mutual Fund. ETFs represent a basket of securities that are traded on an exchange.

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