In PSU Bank ETF banking companies are included. But what makes this ETF special is that all the banking companies included in this ETF are PSU sector banks.
This means that there are no private banks in it, there are all government banks in it. So for those who want to invest in government banks, PSU Bank ETF is a very good option.
The special feature of PSU Bank ETF
The special thing about this ETF is that it is very volatile, so if you trade it properly with your strategy, you can make good profits quickly.
The main reason for this ETF being volatile is that there are only 12 banking companies’ shares are there. All the shares are of a growing company.
So from time to time, there is profit booking in these shares due to which these shares come down a little and the buying-in is very good due to which the shares jump suddenly.
Due to the sudden buying of these shares, the price of PSU Bank ETF also increases suddenly.
How many banks are there in PSU Bank ETF and what percentage of your money goes to which bank?
There are 12 banks in this ETF which are as follows you can also see what percentage of your money is spent per bank. We are taking Nippon PSU Bank Bees for this data.
| PSU Banks in this ETF | Percentage of your money invested per share |
| State Bank of India | 29.05 |
| Bank of Baroda | 17.12 |
| Punjab National Bank | 13.10 |
| Canara Bank | 12.01 |
| Union Bank Of India | 9.18 |
| Indian Bank | 6.73 |
| Bank of India | 6.58 |
| Bank of Maharashtra | 2.11 |
| Indian Overseas bank | 1.43 |
| Central Bank of India | 1.35 |
| UCO Bank | 1.07 |
| Punjab & Sind Bank | 0.27 |
Why did PSU Bank ETF suddenly come into the limelight?
The reason for PSU Bank’s tough situation suddenly coming into discussion is the recent statement given by the Prime Minister of India Narendra Modi.
Prime Minister Narendra Modi said that the PSU sector companies have not been able to get as much growth in the last few years as they should have.
At the same time, the Prime Minister said that we are assigning some good projects to the companies of the PSU sector.
He said that people should now consider investing in the PSU sector also. His statement was to show that all the companies in the PSU sector suddenly started getting profits.
Investors started getting such good returns in PSU bank ETF that they were not able to get the same returns in big stocks.
This is the reason why investors are getting attracted to this ETF and are increasing their investment in PSU Bank Bees.
Returns in PSU Bank ETF
If we talk about January and February 2024, then in these months this asset has given a return of about 19.79%, which is very good.
If we talk about the last 6 months from September 2023 to February 2024, then we have seen returns of up to 53.86% in this ETF.
The return of this ETF is much more than the Nifty 50 ETF. This ETF is going to see a lot of growth in the coming times.
How to invest in this ETF?
It is very easy to invest in this ETF, you can invest with the help of whatever demat account provided you manage your account with.
Although many companies invest in this ETF, some of the main companies which are reliable are as follows.
- Nippon
- Kotak
- DSP
- ICICI
Whichever company you want to invest in PSU Bank ETF through, see the volume and also the market cap.
It is very important that when you want to sell these PDFs at the right price, they should be easily sold.
Can swing trading be done in this ETF?
As we said in the beginning this is a very volatile asset. In this, you see fluctuations of 2% to 3% very frequently.
So those who want to do swing trading can do it in this ETF. You just have to see when you can put money in this ETF and when you can withdraw your money with profit by selling it.
Will it be beneficial to invest in this ETF in the long term?
We talked about how you can earn very good profits by swing trading in this ETF. But many people want to invest their money in the long term, if you are also one of them then this will be a very profitable deal for you.
According to the way this rate is increasing, this ETF is going to give very good returns in the coming time.
As we talked about in the beginning, in this ETF we have calculated returns of 19.79% in one month and 53.86% in 6 months.
So if you want to invest in this asset for the long term then this ETF is going to give you very good returns.
Conclusion
So in this article, we talked about what PSU Bank ETF is and why it is becoming so popular.
We talked about how this ETF has given excellent and incredible returns in the recent past.
Note– We want to advise you that whenever you invest in this asset, you should invest with complete analysis.