R* Shares Banking ETF is an ETF dealing with stocks of finance companies. ETFs are chosen because of the ease of transaction, liquidity and low cost investment option that they offer. This scheme has a passive system in place to track the movement of CNX Bank Index and invest accordingly.
Type or nature of fund
R* Shares Banking ETF is an open-ended Index Exhange Traded Fund
Investment objective
R* Shares Banking ETF is aimed at offering returns that correspond closely to returns offered by securities as represented by the CNX Bank Index. However, the performance of the scheme may diverge from that of the CNX Bank Index owing to tracking errors. The scheme does not offer any guarantee with respect to achievement of the investment objective.
Fund Information
| Inception date | 24th June 2008 |
| CRISIL rank | NA |
| Plans | NA |
| Schemes | NA |
| Entry load | NIL |
| Exit load | NIL |
| Minimum investment | Rs.5000 is the minimum investment amount |
| SIP | NA |
| Product label – Risk and target investors | High, best-suited for investors who are looking for long-term capital appreciation and are willing to take risk with respect to their capital |
| Benchmark | CNX Bank Index |
| SWP | NA |
| STP | NA |
| Redemption | Redemption of R* Shares Banking ETF can be done either online via online terminal or stock broker or through AMC by placing a redemption request. |
| Taxation | R* Shares Banking ETF is taxed like stocks. So in case of profit the profit amount is taxed while in case of loss incurred, there is no tax applicable. |
Fund manager
Omprakash Kuckian:
Omprakash Cuckian is the fund manager for R* shares banking ETF. Omprakash graduated from Mumbai university where he studied commerce and then completed his AICWA degree. Apart from finance he also enjoys theatre and music.
Other funds managed by Omprakash include the following:
- R*Shares CNX 100 ETF
- Reliance Index Fund – Nifty Plan
- R*Shares Consumption ETF
- R*Shares Nifty ETF
- R*Shares Dividend Opportunities ETF
- R*Shares Sensex ETF
- R*Shares NV20 ETF
- R*Shares Gold ETF
- Reliance Gold Savings Fund
- Reliance Capital Builder Fund III – Series A
- Reliance Dual Advantage Fixed Tenure Fund
Investment philosophy or strategy
The investment strategy of R*Shares Banking ETF Fund is mentioned in the section below.
- A passive investment approach designed to track the performance of CNX Bank Index
- Aims to invest in securities constituting the CNX Bank Index in the same proportion as in the CNX index.
Portfolio – Sector / Top 10 holdings
Given below is the break-up of share holdings of the R* Shares Banking ETF.
| Name | Sector | Class | Allocation % |
| HDFC Bank Ltd. | Banking and Finance | Equity | 25.81 |
| ICICI Bank Ltd. | Banking and Finance | Equity | 25.79 |
| Axis Bank | Banking and Finance | Equity | 12.97 |
| State Bank of India | Banking and Finance | Equity | 11.2 |
| Kotak Mahindra Ltd. | Banking and Finance | Equity | 9.15 |
| IndusInd Bank | Banking and Finance | Equity | 4.79 |
| Yes Bank | Banking and Finance | Equity | 3.67 |
| Bank of Baroda | Banking and Finance | Equity | 2.13 |
| Punjab National Bank | Banking and Finance | Equity | 1.6 |
| The Federal Bank | Banking and Finance | Equity | 1.51 |
| Canara Bank | Banking and Finance | Equity | 0.73 |
| Bank of India | Banking and Finance | Equity | 0.64 |
| Total | Banking and Finance | Equity | 100 |
Risk measures
The risk measures listed below have been calculated by taking rolling return for a 3 year period from 31/08/2012 to 31/08/2015
| Sharpe Ratio | 0.59 |
| Alpha | 1.45 |
| Beta | 0.98 |
| Portfolio Turnover Ratio | NA |
Fund Performance
| NAV | Rs.1747.018 as of 3rd September, 2015 |
| Expenses, expense ratio | 0.22% |
Benchmark Comparison
Following is the benchmark comparison for Reliance Banking Fund as per data from May 29th, 2015.
| Type | 1 year | 3 years | 5 years |
| Fund Return | -0.38% | 17.16% | 8.31% |
| S&P BSE Benchmark Return | -1.35% | 15.84% | 7.30% |
| Difference between Fund & S&P BSE Bank Index return | 0.97% | 1.32% | 1.01% |
| Category Avg. Return | 0.25% | 13.97% | 4.77% |
| Difference between Fund & Category Avg Return | -0.63% | 3.19% | 3.54% |
| Rank in Category | 14th | 3rd | 3rd |
Absolute Returns for each financial year for the last 5 years are mentioned above.
Expert view of the fund
R* Shares Baking ETF is an Exchange Traded Fund listed on NSE and BSE indices. Teh fund invests in stocks of CNX Bank Index in the same proportion as the underlying index. This ETF scheme is less expensive as compared to investment in individual stocks listed on the CNX Bank Index. The fund offers its investors an opportunity to invest in a well-planned financial portfolio of top banks, passively. With strong integration of technology with the banking domain, the banking indutry has been consistently growing and shows signs of huge future potential. This makes investment in the field extremely lucrative. Customers who are looking for long term returns on capital and those who have a higher risk appetite should go for this fund.
How to apply for R* Shares Banking ETF Fund
Applying for R* Shares Banking ETF Fund is easy and simple. Online as well as offline channels can be availed for getting this mutual fund scheme. You can visit the Reliance Mutual Fund website for online application whereas you can go to any of the Reliance Mutual Fund offices for offline application.
Customers are required to submit certain KYC documents along with a duly filled application form. Mobile application and mobile website of Reliance mutual fund ensure that you benefit from mobile platforms for application of mutual fund schemes. Fund advisers from Reliance can be called up in order to know details pertaining to various Reliance mutual fund schemes.
