Nippon India ETF PSU Bank BeES

The Nippon India ETF PSU Bank BeEs scheme was previously known as the R*shares PSU Bank BeES and exhibits the below features:

Investment amount for Nippon India ETF PSU Bank BeEs

Asset Allocation for Nippon India ETF PSU Bank BeEs

Who can Invest in Nippon India ETF PSU Bank BeEs

The below-mentioned entities/persons are eligible to subscribe to the units of Nippon India ETF PSU Bank BeEs:

1. Adult individuals residing in India, either singly or jointly (cannot exceed 3 people)
2. Hindu Undivided Families
3. Minors through a legal guardian or parent
4. Persons of Indian Origin (PIO)/Non-Resident Indians (NRIs), on repatriation or non-repatriation basis
5. Association of Persons or Body of Individuals
6. Corporate bodies and companies registered in India
7. Partnership firms in the name of any one of the partners
8. Universities and educational institutions
9. Financial institutions and banks (including Regional Rural Banks and Co-operative Banks)
10. Scientific and Industrial Research Organisations
11. Army, Navy, Air Force, and other paramilitary funds
12. Proprietorship in the name of the sole proprietor
13. Religious and Charitable Trusts, Wakfs or endowments of private trusts
14. SEBI registered Foreign Portfolio Investor
15. International Multilateral Agencies approved by the RBI and Government of India
16. Mutual fund schemes registered with SEBI (Securities and Exchange Board of India)
17. Pensions/Gratuity/Provident Fund to a permissible extent
18. AMC/Trustee or Sponsor or their associates

NAV Disclosure and Benchmark for Nippon India ETF PSU Bank BeEs

The Net Asset Value (NAV) for this scheme is calculated by dividing the net assets of the scheme by the number of units that are outstanding on the date of valuation.

The NAV is declared at the end of each business day and is calculated up to 4 decimals. The NAV will be updated on the website of AMFI (Association of Mutual Funds in India) at www.amfiindia.com by 9:00 p.m. and on the website of Nippon India Mutual Fund - www.Nippon Indiamutual.com or www.Nippon Indiaetf.com. The NAV will also be published in at least 2 newspapers with nationwide circulation on every business day.

Liquidity: The units of the Nippon India ETF PSU Bank BeEs can be purchased and sold like any other stock listed on the National Stock Exchange of India Ltd. (NSE) in the creation unit size.

Benchmark Index: Nifty PSU Bank

Fund Manager

Ms. Payal Wadhwa Kaipunjal

She has been a Senior Fund Manager with Nippon India Nippon Life Asset Management Ltd. since November 2016 and specialises in equity investments. Some of the other funds managed by her are Nippon India ETF Nifty BeEs, Nippon India ETF Gold BeEs, Nippon India ETF Junior BeEs, Nippon India ETF Sensex, Nippon India ETF NV20, Nippon India Gold Savings Fund, etc.

Investment Restrictions on Nippon India ETF PSU Bank BeEs

According to the SEBI (Securities and Exchange Board of India) guidelines, the below-given restrictions apply with regards to the Nippon India ETF PSU Bank BeEs scheme:

1. The scheme will not advance any term loans for any purpose.
2. The scheme cannot invest above 10% of its NAV in debt securities that have been issued by a single issuer and rated above the investment grade by a credit rating agency. This limitation will not be applicable to investments in treasury bills, government securities, and CBLO (Collateralised Borrowing and Lending Obligation).
3. The fund shall not invest above 10% of its NAV in unrated debt securities and the total investment in such securities will not exceed 25% of the scheme's NAV.
4. The scheme cannot invest above 5% of its NAV in the unlisted equity shares or equity-related instruments.
5. The scheme can borrow up to 20% of its assets to meet its liquidity needs. The duration of the borrowing should be less than 6 months.
6. The scheme cannot invest in securitised debt, fund of funds, and cannot own more than 10% of any firm's paid-up capital voting rights.
7. The fund can invest in another scheme of Nippon India Mutual Fund or any other mutual fund without charging any fees.
8. The scheme cannot make investments in - any unlisted security of a group company or associate of the sponsor, any security issued by private placement, any listed securities of sponsor's group company which is more than 25% of the net assets.
9. The scheme can lend securities as per SEBI norms and will comply to all the SEBI regulations.
10. The total value of 'illiquid securities' should not exceed 15% of the total assets of the scheme.

Dividend Policy of Nippon India ETF PSU Bank BeEs

The Nippon India ETF PSU Bank BeEs offers only growth option but the Trustee may still choose to declare a dividend from time to time depending on the availability of distributable surplus. If dividend warrants are dispatched, it shall be done within 30 days from the declaration date of the dividend. If the AMC fails to dispatch the warrants within 30 days, it shall pay a 15% p.a. interest of the relevant dividend to the unitholders.

Other facilities under Nippon India ETF PSU Bank BeEs

The Nippon India ETF PSU Bank BeES does not offer Systematic Investment Plans, Systematic Transfer Plans or Systematic Withdrawal plans.

Why you should invest in Nippon India ETF PSU Bank BeEs

1. The units of Nippon India ETF PSU Bank BeES can be traded on a stock exchange like a normal stock through terminals that are distributed across India.
2. The scheme has an ability to put limit orders and helps in increasing liquidity of the underlying cash market.
3. The units of Nippon India ETF PSU Bank BeES can be purchased or sold anytime during market hours letting investors invest at real-time prices instead of end-of-day prices.
4. The process of investing in the Nippon India ETF PSU Bank BeES is hassle-free as it can be done through a phone call or online and there is no need to fill up separate forms for either purchasing or selling the units.
5. The Nippon India ETF PSU Bank BeEs offers protection to long-term investors from the outflows and inflows of short-term investors.
6. The scheme also offers flexibility to investors by letting them gain instant exposure to gold and equity markets, hedging between futures and cash market, and equitizing cash.
7. As the units of the Nippon India ETF PSU Bank BeEs are issued in a demat form, the investor can receive a consolidated view of his/her investments without the need to add different account statements.

GST rate of 18% applicable for all financial services effective July 1, 2017.