The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Financial Services TRI, subject to tracking errors. However, the performance of scheme may differ from that of the underlying index due to tracking error. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes` objectives will be achieved.
The Scheme will be managed passively with investments in stocks in a proportion to the weightage of these stocks in the Nifty Financial Services TRI. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections / redemptions in the Scheme. Since the Scheme is an exchange traded fund, the Scheme will only invest in the securities constituting the underlying index. However, due to corporate action in companies comprising of the index, the Scheme may be allocated/allotted securities which are not part of the index. Rebalancing of the scheme shall also be carried out whenever there is a change in the underlying index or any change due to corporate action with respect to the constituents of the underlying index within 7 calendar days. The Scheme may also invest in debt/ money market instruments, in compliance with Regulations to meet liquidity and expense requirements.