Reliance Banking Exchange Traded Fund RBETF: ETF

After the Reliance Gold ETF, the Reliance Mutual fund company has come out with another ETF or Exchange traded Fund. It is called the Reliance Banking Exchange Traded Fund or the Reliance Banking ETF or RBETF.


What is Reliance Banking Exchange Traded Fund (RBETF) all about?
The Reliance Banking Exchange Traded Fund is about a new fund which will be exchange traded, and hence shares of this ETF can be traded on the exchange in real time.

Which sector the Reliance Banking Exchange Traded Fund (RBETF) be targeting?
As the name suggests, the Reliance Banking Exchange Traded Fund or Reliance ETF will be betting the investors money in the banking sector.

Which benchmark index will be tracked by Reliance Banking Exchange Traded Fund (RBETF)?
India Index Service and Product Limited (IISL) has developed the CNX Bank Index. This is the index that Reliance Banking Exchange Traded Fund will be tracking. Presently the index has 12 stocks from the banking sector traded on the National Stock Exchange.

Where will the Reliance Banking Exchange Traded Fund shares be listed?
The shares of Reliance Banking Exchange Traded Fund will be traded on the NSE or National stock exchange of India.

Related: Kotak Sensex ETF,   ETF: An example with returns calculations,  Simplest way to Invest in ETF,  Gold ETF

How will the assets be allotted in Reliance Banking Exchange Traded Fund scheme?
Around 90 to 100% of the money will be put in the stocks covered within the benchmark CNX bank stocks. While the remaining 0 to 10% will be in Liquid Money market Instruments like CBLO.

What is the minimum application amount for Reliance Banking Exchange Traded Fund (RBETF)?
The minimum investment amount for Reliance Banking ETF is 5000 Rs. and in multiples of Re. 1 after that.

What are the entry and exit load charges during and after the NFO period for Reliance Banking Exchange Traded Fund?
During NFO period, a standard 2.25% entry load will be charged to the investors.
After the NFO period, there will be no entry load charges, but the standard brokerage costs will be applicable and will vary from one broker to the other.
The exit load will be the brokerage on sell leg and will again be determined by the respective broker.

What are the opening and closing date for the Reliance Banking Exchange Traded Fund NFO? The Reliance Banking Exchange Traded Fund will accept NFO applications between 12th May 2008 and 30th may 2008.

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