To assist investors in capturing the growth opportunity across the breadth of financial services, Aditya Birla Sun Life AMC has announced the creation of an ETF tracking the Nifty Financial Services TRI. Subscriptions for the Aditya Birla Sun Life Nifty Financial Services ETF will be accepted from July 14 through July 27, 2022.
The Nifty Financial Services Index is a well-diversified portfolio that covers insurance, wealth management, stock broking, payment systems, and other financial services in addition to traditional banking. Twenty of the top Indian-listed financial services companies are represented in this Index. It has provided respectable double digit returns over both 5 and 10 years of investing and is mostly a large cap index.
Financial Services is an important economic sector that includes banks, NBFCs, insurance firms, AMCs, and other financial organisations. These businesses are all-pervasive and necessary at all stages of life and business. Every period of life, from the early income stage through retirement, has an increasing requirement for financial services. Over the past two years, there has been a huge valuation derating in the financial services sector, particularly banks. This ETF has a significant possibility for growth given the strategic importance of the sector in the Indian markets and the anticipated valuation recovery.
20 stocks make up the Nifty Financial Services Index. Banks, financial institutions, housing finance businesses, insurance providers, and other providers of financial services are all included in the Nifty Financial Services TRI.