Nifty Financial Services Index

A few months before NSE launched a new Index - Nifty Financial Services Index, which tracks the performance of Indian financial services companies including banks, housing finance, insurance, NBFCs, other financial services companies etc. The index comprises a maximum of 20 stocks and is reconstituted semi-annually.

Constituents of the Nifty Financial Services Index:

Nifty Financial Services Index


The Nifty Financial Services Index has outperformed both the Nifty 50 Index and Nifty Bank since inception. Being a sector index, the Nifty Financial Services Index has been more volatile than the Nifty 50 Index, however being more diversified than Nifty Bank Index, it has been less volatile than the Nifty Bank Index over various time horizons.

Nifty Financial Services Index
image source NSEINDIA

Mirae Mutual Fund has launched an ETF for the above index which is currently open. 

Nifty Financial Services Index has exhibited better return to risk profile along with lower drawdown vs Nifty Bank Index. The above ETF is a relatively low-cost option to participate in Banking & Financial Services Sector, suitable for investors with higher risk appetite.