swapna
19-05-2008, 07:25 AM
12 May-30 May 08
Reliance Banking ETF is an Exchange traded fund which looks invest in banking stocks and track the CNX Bank Index and generate a return equivalent to the benchmark index.
Investment objective:
To generate returns that closely corresponds to the total returns of the securities as represented by the CNX Bank Index.
Investment strategy:
To invest in 12 banking stocks representing the CNX Bank Index in the same proportion as that of the Index.
ETFs
ETFs are innovative products that provide exposure to an index or a basket of securities that trade on the exchange like a single stock
Benefits of investing in ETFs
Can be easily bought / sold like any other stock on the exchange through terminals spread across the country
Can be bought / sold anytime during market hours at prices that areexpected to be close to actual NAV of the Scheme. Thus, investor investsat real-time prices as opposed to end of day prices
Minimum investment for an ETF is one unit
Protects long-term investors from the inflows and outflows of short-term investors
Flexibility: can be used as a tool for gaining instant exposure to the equity markets, hedging or for arbitraging between the cash and futures market
Helps increasing liquidity of the underlying cash market
Aids low cost arbitrage between Futures and Cash market
An investor can get consolidated view of his investments in a demat form
Future of Banking Sector
The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.
The burgeoning economy, surging foreign investment, financial sector reforms and a favourable demographic profile has led to the Indian banking industry emerging as one of the fastest growing in the world.
Over eight year period the banking sector has generated a whopping 26% return as compared to S&P CNX 500 which has generated only 15% return.
This sector is expected to grow to $1 Trillion market cap by 2017 from current $165 Billion market cap. Source: Morgan Stanley
Beneficial for:
Investors with long term investment outlook and who believe in the growth story of Indian Financial Sector.
Fund Facts:
Type: Open-Ended
Minimum application amount: Rs5000/-
Entry Load: 2.25%
Exit Load: NIL
Benchmark Index: CNX Bank Index
Reliance Banking ETF is an Exchange traded fund which looks invest in banking stocks and track the CNX Bank Index and generate a return equivalent to the benchmark index.
Investment objective:
To generate returns that closely corresponds to the total returns of the securities as represented by the CNX Bank Index.
Investment strategy:
To invest in 12 banking stocks representing the CNX Bank Index in the same proportion as that of the Index.
ETFs
ETFs are innovative products that provide exposure to an index or a basket of securities that trade on the exchange like a single stock
Benefits of investing in ETFs
Can be easily bought / sold like any other stock on the exchange through terminals spread across the country
Can be bought / sold anytime during market hours at prices that areexpected to be close to actual NAV of the Scheme. Thus, investor investsat real-time prices as opposed to end of day prices
Minimum investment for an ETF is one unit
Protects long-term investors from the inflows and outflows of short-term investors
Flexibility: can be used as a tool for gaining instant exposure to the equity markets, hedging or for arbitraging between the cash and futures market
Helps increasing liquidity of the underlying cash market
Aids low cost arbitrage between Futures and Cash market
An investor can get consolidated view of his investments in a demat form
Future of Banking Sector
The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.
The burgeoning economy, surging foreign investment, financial sector reforms and a favourable demographic profile has led to the Indian banking industry emerging as one of the fastest growing in the world.
Over eight year period the banking sector has generated a whopping 26% return as compared to S&P CNX 500 which has generated only 15% return.
This sector is expected to grow to $1 Trillion market cap by 2017 from current $165 Billion market cap. Source: Morgan Stanley
Beneficial for:
Investors with long term investment outlook and who believe in the growth story of Indian Financial Sector.
Fund Facts:
Type: Open-Ended
Minimum application amount: Rs5000/-
Entry Load: 2.25%
Exit Load: NIL
Benchmark Index: CNX Bank Index