The National Stock Exchange (NSE) on Wednesday mentioned asset base of all of the exchange-traded funds (ETFs) monitoring Nifty 50 index within the nation has crossed Rs 1 trillion, which signifies rising traders’ curiosity in such merchandise.
Also, the entire assets under management (AUM) of the ETF (fairness and debt) have reached Rs 2 trillion, the NSE mentioned in an announcement.
According to the change, ETF investments are witnessing good progress primarily because of transparency, diversification and price effectiveness.
(*2*) NSE Managing Director and Chief Executive Officer Vikram Limaye mentioned.
The first ETF was launched in India in December 2001 and was linked to Nifty 50. However, the precise progress within the ETF AUM has occurred solely up to now 5 years, whereby the asset base of ETFs has surged from Rs 7,032 crore as on August 2015 to Rs 2.07 trillion as on August 2020, indicating an annualised progress rate of 97 per cent.
Also, the variety of ETFs has additionally climbed from 36 to 82 as on August through the interval.
In March 2014, the federal government determined to take the ETF route for disinvestment by means of CPSE ETF. Further, the Employees’ Provident Fund Organisation (EPFO) began to take a position a part of its funds in equities by means of the route in August 2015.
The change believes these have been vital measures and demanding stepping stones for the success of the Indian ETF trade.
It, additional, mentioned that Nifty indices have about 77 per cent market share when it comes to asset base (fairness and debt) of the ETF trade within the nation. Additionally, there are 11 ETFs on Nifty indices which might be traded within the worldwide markets.
“Nifty 50 and various other Nifty indices have been well accepted and recognized for launching ETFs in India. In addition to Nifty 50, there are 25 other Nifty indices on which ETFs are available in India,” NSE Indices CEO Mukesh Agarwal mentioned.
“We will continue to work with various stakeholders in developing new indices, including Debt Indices, to facilitate new ETFs that will offer a variety of investment products to investors,” he added.