Why should you consider investing in the Nifty Financial Services Ex Bank Index?

livemint.com:

fintech solutions, the financial services sector caters to the evolving needs of a dynamic economy.Like in any other sector, innovation lies at the heart of the financial services sector's growth trajectory. Technological advancements, coupled with changing consumer preferences, have spurred a wave of innovation, transforming traditional financial services delivery models.Fintech companies, in particular, have emerged as disruptors, offering innovative solutions such as digital payments, robo-advisory services, and peer-to-peer lending platforms.

These innovations not only enhance efficiency and accessibility but also foster financial inclusion, reaching previously underserved segments of the population.Amidst this backdrop of income-driven growth and innovation, the Nifty Financial Services Ex Bank Index based offering emerges as a good investment opportunity to consider.This index provides investors with exposure to a broad spectrum of participants in the financial services sector such as insurance providers, asset management firms, housing finance companies, brokerage firms and fintech enterprises, but minus the banks. The number of stocks in the index can range from 10 to 30.The largest 30 stocks from the eligible industries are chosen based on the six-month average free-float market capitalisation.

Each of these names are selected from the Nifty 500 universe and their individual weights are capped at 25%. The index rebalancing is conducted semi-annually.What makes the offering compelling is that the index takes a detour from the often taken path of taking exposure to banks when it comes to investing in the financial services theme.