JOIN USAssets under Management (AUM) of the Nifty 50 exchange traded funds (ETFs) has surpassed the Rs 10,000-crore mark.
ETFs covering Nifty family of indices are traded in 19 exchanges covering 16 countries. Taiwan Stock Exchange is one of the latest exchanges to offer ETFs on Nifty 50.
The first ETF in India was launched in December 2001, which was based on Nifty 50. Currently, there are 13 ETFs on Nifty 50 index listed in India. NSE’s subsidiary, IISL, constructs and maintains such indices. IISL is currently working on several other indices that can be used for third party products like ETFs.
ETFs are a group of securities, which are traded like individual stocks on an exchange. ETFs can track equity indices, bonds and commodities. A small time retail investor can buy ETFs for as little as about Rs 100 and these can be then bought and sold as a share on the exchange with a minimum trading lot of one unit and carry lower management costs when compared with mutual funds.
“India is catching up with the global trend in the ETF segment, where ETF industry is worth $3.2 trillion as on June 30, 2016,” NSE Managing Director and Chief Executive Officer Chitra Ramkrishna said.
NSE is talking about ETFs for more than a decade now, with hundreds of roadshows completed across the length and breadth of the nation. We are pleased to see a surge in investors’ interests in ETF products, Ramkrishna added.