3. The Highest Sectoral Profit Pool
24%
8%
12%
16%
20%
24%
28%
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Latest
Banks % share in NIFTY 50 Index Profits
India NPA
recognition peak
Banks have the highest
sectoral profit pool in all
the major* indices.
Source: Bloomberg, DSP, Data as on Nov 30, 2022, *NSE 500 Index, BSE 200 Index
9. “We are probably in one of the most important Cinderella
times of the credit cycle. …only point is we don’t know
what time of the day it is. We are conscious that this is still
probably a little early, well before midnight. But we have to
be ready that if and when that clock strikes, we are in a
good shape to be able to handle that time”
“And as far as credit costs are concerned. So they also are lower than what we
had expected. Going ahead also, we would expect the credit costs to trend
downwards. We had earlier been guiding at between 1.25% to 1.5%. Now
possibly, we would want to revise that to between 1% to 1.25% even taking into
account some mishaps in the coming quarters. But for the moment, we believe
that the book is robust and things are pretty much under control. So credit costs
should continue to trend downwards through the coming quarters of the year”
Cinderella Times
Bank of Baroda
Uday Kotak, Kotak Mahindra Bank
11. Private + Public Banks In One Stop
With 78% Private Banks and 22% Public Banks, there is good diversification
Source: NSE. Data as on 30 Nov 2022.
12. Liquid & Large
Banking Stocks
Maximum 12
Banking stocks
No single stock
exposure > 33%
Max exposure to top
3 stocks <= 62%
Semi-Annual
rebalancing
Index Features
Source: NSE
13. 0
1000
2000
3000
4000
5000
6000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Value of Rs.100 invested on 01 Jan, 2000
Nifty Bank TRI
Nifty 50 TRI
19.2%
12.9%
Year Nifty Bank Index Nifty 50 TRI
2000 -7% -20%
2001 -8% -15%
2002 45% 5%
2003 119% 77%
2004 38% 13%
2005 32% 39%
2006 35% 42%
2007 66% 57%
2008 -49% -51%
2009 84% 78%
2010 32% 19%
2011 -32% -24%
2012 58% 29%
2013 -8% 8%
2014 66% 33%
2015 -9% -3%
2016 8% 4%
2017 41% 30%
2018 7% 5%
2019 19% 13%
2020 -3% 16%
2021 14% 26%
2022 23% 10%
Source – MFIE. Data as on 30 Nov 2022. Past performance may or may not be sustained in future and should not be
used as a basis for comparison with other investments. These figures pertain to performance of the index/Model and do
not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
Long term Performance
Nifty Bank Index has outperformed broad based Nifty 50 Index in 15 out of 23 years
14. 0%
5%
10%
15%
20%
25%
30%
35%
40%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
10 year Rolling Returns
Nifty Bank TRI
Nifty 50 TRI
19.3%
14.2%
Source – MFIE. Data as on 30 Nov 2022. Past performance may or may not be sustained in future and should not be
used as a basis for comparison with other investments. These figures pertain to performance of the index/Model and
do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
Rolling Returns
Nifty Bank index has
outperformed Nifty 50 Index
98% of times on a
10-year basis. A long-term
structural story with
consistent performance!
15. 55.2%
85.6%
68.6%
42.3%
43.7%
56.0%
37.7%
41.5%
Jan 2003 - Dec 2007 Mar 2009 - Dec 2010 Jan 2014 - Dec 2019 Mar 2020 - Nov 2022
Nifty Bank TRI Nifty 50 TRI
Source – MFIE. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. These figures
pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
Performance in Bull phase
Nifty Bank Index generally outperforms the broad-based Nifty 50 Index in Bull phase
16. Numbers in ( ) indicates number of years of experience. The investment approach / framework/ strategy mentioned
herein are currently followed and the same may change in future depending on market conditions and other factors.
Portfolio Management / Dealing / Analysis
Aanchal Almal,
CFA
(8 yrs)
Manager
Diipesh Shah
(19 yrs)
Vice President
Anil Ghelani, CFA
(20 yrs)
Head of Passive
Investments & Products
Passive Investments Process
Review Opening Portfolios
and forecast Cash Flows
Review market liquidity to
manage impact costs
Pre - Trade Evaluation Investment Decision Post - Trade Analysis
Track mandatory and elective
Corporate Actions
Strategy for stock level
timing and pace of execution
Identify price movements
and evaluate stock lending
opportunities
Evaluate trade execution
Analyse Tracking Error
Ensure real time portfolio
weights align with
underlying index
Track Scheduled and Adhoc
rebalances
Monitor
real time market movement
Investment team & Process
In line with global best
practices - dedicated
passive investment
desk to increase focus
17. Concentration Risk
• This index provides exposure only to the banking sector, leading to sector-level concentration risk
• This index has only 12 stocks, thereby leading to stock level concentration risk
High Volatility & Drawdown
• This fund can have higher volatility & drawdowns as compared to diversified equity funds
Underperformance
• This fund can underperform diversified equity funds in the short-term
Risks
18. DSP Nifty Bank ETF
(An open ended scheme
replicating/ tracking Nifty
Bank Index)
This product is suitable for investors who are
seeking*
• Long-term capital growth
• Investment in equity and equity related
securities covered by Nifty Bank Index, subject
to tracking error.
*Investors should consult their financial advisers
if in doubt about whether the Scheme is suitable
for them.
Disclaimers: This presentation / note is for information purposes only. It should not be construed as investment advice to any party. In this material DSP Investment Managers Pvt. Ltd. (the AMC) has used information
that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. While utmost care has been exercised while preparing this
document, the AMC nor any person connected does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The
recipient(s) before acting on any information herein should make his/their own investigation and seek appropriate professional advice. The statements contained herein may include statements of future expectations
and other forward looking statements that are based on prevailing market conditions / various other factors and involve known and unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such statements. Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other
investments. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the schemes of DSP mutual fund may or may not have any future
position in these sector(s)/stock(s)/issuer(s). Large-caps are defined as top 100 stocks on market capitalization, mid-caps as 101-250 , small-caps as 251 and above. Data provided is as on Nov 30. 2022(unless
otherwise specified)
The figures pertain to performance of the index and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index. All opinions, figures, charts/graphs and data
included in this presentation are as on date and are subject to change without notice. For complete details on investment objective, investment strategy, asset allocation, scheme specific risk factors and more details,
please read the Scheme Information Document, Statement of Additional Information and Key Information Memorandum of respective scheme available on ISC of AMC and also available on www.dspim.com. There is
no assurance of any returns/capital protection/capital guarantee to the investors in above mentioned Scheme. The presentation indicates the strategy/investment approach currently followed by the above
mentioned Scheme and the same may change in future depending on market conditions and other factors. For index disclaimer click here. An investor, by subscribing or purchasing an interest in the Product(s), will
be regarded as having acknowledged, understood and accepted the disclaimer referred to in Clauses above and will be bound by it.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
SCHEME RISKOMETER BENCHMARK RISKOMETER - Nifty Bank TRI
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