ETF Securities in Australia launches India's first exchange-traded fund

ETF Securities has launched the first Indian exchange-traded fund (ETF) in Australia in partnership with Reliance Nippon Life Asset Management (RNAM).

Listed on the Australian Securities Exchange with the code NDIA, the ETF will provide Australian investors an opportunity to tap into the world's fastest-growing major economy.

NDIA tracks India's Nifty 50 Index, which holds the country's fifty biggest companies listed on the National Stock Exchange (NSE). It accounts for 13 sectors representing about 66.8 per cent of the free float market capitalisation of the stocks listed on the NSE.

RNAM took over the schemes of Goldman Sachs India in 2016 with assets under management of Rs 24,546 crore and has 60 per cent of ETF folio share -- the highest number of ETF folios in the industry. RNAM has been a pioneer in the Indian ETF market with over 17 years of experience in managing ETFs in India.

"RNAM is the first Indian asset management company to partner with an international asset manager to bring investments into India through the ETF route," said RNAM's Executive Director and CEO Sundeep Sikka.

"NDIA will provide Australian investors access to the Nifty 50 Index which has been the torch-bearer of Indian equities for the last 25 years and is considered to be 'the Stock of the Nation," he said in a statement.

Head of ETF Securities Kris Walesby said India has been the most dynamic economic growth story globally. "This product offers investors the chance to gain exposure to a 2.6 trillion US dollar economy that still has tremendous potential to grow as India reaps the benefits of structural reforms."

Another positive is the fact that 60 per cent of India's GDP is driven by domestic private consumption (compared to 40 per cent in China), effectively insulating the economy against external shocks, said Walesby.

ETF Securities is Australia's only independent ETF provider with more than one billion Australian dollars in funds under management across sectors as diverse as robotics, biotechnology, infrastructure and commodities.

RNAM is one of the largest asset managers in India, managing assets across mutual funds, pension funds, managed accounts, alternative investments and offshore funds.

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