Fund Objective
The objective of the Scheme is to invest in companies whose securities are included in Nifty Private Bank Index, subject to tracking errors, to endeavor to achieve the returns of the above index. This would be done by investing in all the stocks comprising the Nifty Private Bank Index in the same weightage that they represent in Nifty Private Bank Index. However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.
Notes
The corpus of the Scheme will be invested in stocks constituting the respective benchmark of the Scheme i.e. Nifty Private Bank Index and a very small portion (0-5% of the Net Assets) of the scheme may be kept liquid to meet the liquidity and expense requirements. Further, the Scheme shall follow a passive investment strategy. The performance of the Scheme may not commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index. The tracking error i.e. the annualized standard deviation of the difference in daily returns between the underlying index or goods and the NAV of the Index Fund based on past one year rolling data shall not exceed 2%. The same shall be in accordance with the master circular. The stocks comprising the Nifty Private Bank Index is periodically reviewed by NSE Indices. A particular stock may be dropped or new securities may be included as a constituent of the index. In such an event, the Scheme will endeavor to reallocate its portfolio but the available investment/ disinvestment opportunities may not permit precise mirroring of the index immediately. The portfolio shall be rebalanced within 7 calendar days to ensure adherence to the asset allocation norms of the Scheme. Similarly, in the event of a constituent stock being demerged / merged / delisted from the exchange, the Scheme will reallocate the portfolio and seek to minimize the variation from the index. Further, the Scheme intends to participate in securities lending as permitted under the regulations.