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PSU Bank ETFs Surge: 10-Year Returns Soar!
5 Jul
Summary
- Nippon India ETF Nifty PSU Bank BeES leads with ₹4,078 crore AUM.
- A ₹1 lakh investment in Nifty PSU Bank Index grew to ₹3.51 lakh in five years.
- The index delivered a 10-year return of 226%, turning ₹1 lakh into ₹3.26 lakh.
The Nifty PSU Bank Index, comprising 12 listed public sector banks, has demonstrated strong performance. Nippon India ETF Nifty PSU Bank BeES stands as the largest fund in this category, managing assets worth ₹4,078 crore, followed by Kotak Nifty PSU Bank ETF and DSP Nifty PSU Bank ETF.
Over the past year, a ₹1 lakh investment in the Nifty PSU Bank Index yielded approximately ₹1.19 lakh, a return of 18.81%. The long-term performance is even more impressive, with a ₹1 lakh investment more than doubling to ₹2.02 lakh in three years.
Wealth creation over five years saw a CAGR of 28.57%, escalating the ₹1 lakh investment to ₹3.51 lakh. Over a decade, the same investment grew substantially to ₹3.26 lakh. Nippon India PSU Bank ETF and Kotak Nifty PSU Bank ETF delivered 5-year CAGRs of 27.80% and 27.77% respectively, closely mirroring the benchmark index's performance.
