You are here: Home » Markets » News
Business Standard

Domestic ETF assets jump 10-fold at Rs 895 billion in the past three years

The NSE is positive on the growth prospects of ETFs in India, and is closely working with all stakeholders

Topics
Etf Investments  |  Nse  |  Aum

BS Reporter 

Mutual Funds: Illustration: Binay Sinha
Illustration: Binay Sinha

The assets under management (AUM) of (ETFs) — both equity and debt — has seen a tenfold jump in the past three years. At the end of October, equity and debt ETF in India stood at Rs 895 billion.

Three years ago, it stood at Rs89 billion. Global ETF recently crossed the $5-trillion mark. “ETF is a low-cost investment product and provides easy diversification. The is positive on the growth prospects of ETFs in India, and is closely working with all stakeholders,” said Vikram Limaye, managing director and chief executive officer, NSE, during the India ETF Conference 2019. Indices, provided by NSE's Nifty, account for 76 per cent of the ETF AUM, the exchange said in a release. “ETF route shall now be increasingly used by various stakeholders, including by the government, to continue monetising their holdings,” said Atanu Chakraborty, secretary, Dipam. He said the government might look at launching another tranche of the Bharat 22 ETF.

Further, Chakraborty said the government's move to reduce its stake in Pawan Hans was at an advanced stage. The Dipam secretary said the government would achieve its disinvestment target of Rs 800 billion.

ALSO READ: EPFO likely to increase proportion of ETF investment to UTI Mutual Funds

ETF is a basket of securities traded like individual stocks on an exchange. ETFs can track indices of various asset classes such as equity, fixed income, commodities.

First ETF in India was launched in December 2001. However, the ETF segment got a boost in 2014, when the government decided to divest in Central Public Sector Enterprises (CPSEs) through the ETF route. The CPSE ETF is benchmarked to NIFTY CPSE Index. Since then, the government has mobilised about Rs350 billion through two ETFs - CPSE ETF and Bharat 22 ETF.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 03 2018. 23:36 IST
RECOMMENDED FOR YOU
.