The price of PSU Bank Bees share price is currently trading at 78. Let us tell you that this ETF has given excellent returns in the last few months.
While private banks were going into a loss or consolidating, banks of public sector units have given a very good performance. All these PSU banks come under PSU Bank Bees or PSU Bank ETF.
Whoever invested in this asset has earned excellent returns. PSU Bank Bees is an asset run by Nippon through which you can invest in all the best PSU banks together.
Now it remains to be seen how the performance of this ETF will be before this Lok Sabha election and how much return it will be able to give.
Let us talk today about PSU Bank Bees or PSU Bank ETF’s return prediction before the Lok Sabha election in India.
Prediction of PSU Bank Bees or Returns of PSU Bank ETF
The way this asset has been giving returns recently, it seems that it is going to give excellent returns in the future too.
If we look at history, before any Lok Sabha election, a rally of 15% to 17% is seen in PSU banks, especially in the State Bank of India within one or two months before elections.
If we talk about the last Lok Sabha elections, the last Lok Sabha elections in India were held in 2019. The thing to note is that before this election, not only all the PSU banks but especially the State Bank of India had shown a rally of 15 to 17%.
We saw this rally between 1 to 2 months before the start of the elections. So it is clear that the investors going to increase their investments in the State Bank of India and other PSU banks before the elections.
As we said in the beginning PSU Bank Bees or PSU Bank ETF is a collection of all the PSU banks. So if there is growth in these banks then it will have a direct impact on PSU Bank Bees.
According to this data, PSU Bank Bees share price will cross 90 in the upcoming one or two months.
Can we invest in PSU Bank Bees by looking at past data?
Only time can tell what is going to happen in the future which Share will rise and which one will fall. But if we talk about the share market, it operates based on history only because if you look at the chart pattern, it also shows us history.
Even if you do not want to go into the history and if you look at the present of PSU banks, then you will see that a lot of growth is happening in this sector and there is going to be even more growth in the future.
Why should we take PSU Bank Bees or PSC Bank ETF instead of PSC Bank shares?
This is a very good and natural question. This shows how well you want to understand the market and how much you want to make good profits from the market.
See, suppose the shares of PSU Bank will increase but there are 12 banks in PSU Bank Bees or PSU Bank ETF.
Now suppose that out of these 12, 10 banks grow and two banks do not grow. In this case, your investment will grow because investment is made according to the average.
So if even 10 out of 12 banks do good work then that is enough to give you a good return.
Assume that you have taken shares of the same two banks which are not going to grow, then you will miss a good rally and may incur a loss.
We are not saying that investing in shares is wrong but if you make even a little mistake in technical analysis, it can cause a huge loss.
At the same time, it is an investment with guaranteed returns when you invest your money properly in the PSU Bank Bees so that you can get good returns from there.
Which bank has the highest percentage of PSU Bank Bees?
State Bank of India has the highest percentage of PSU bank Bees which is 20.05%. So if State Bank of India Shares performs well then you will see its direct effect in PSU Bank Bees.
But other banks also have a good percentage in this ETF to maintain the profit when the State Bank Of India does not perform well.
This is why by investing in ETF, you have very good chances of making a profit because your money remains properly diversified.
Conclusion
As we have also seen in history before the Lok Sabha elections in India, there was a good boom in PSU banks, an example of which is the 2019 Lok Sabha elections.
If we look at the recent position of PSU banks and the position of these PSU banks in history before the Lok Sabha elections, we will find that this is the best opportunity to invest as PSU Bank Bees share price is going to increase.
We would advise you that instead of investing in shares of any PSU bank, invest in PSU Bank Bees so that your chances of getting good returns increase manifold.
Note– Before investing in any ETF, get complete information about the sector and do your complete technical analysis, so that you do not have to suffer huge losses after investing and you can convert the investment into good profit.