ETF assets soar by Rs 1.1 trillion in the first nine months of FY22

Domestic investors have taken a liking to exchange traded funds (ETFs) — low-cost investment vehicles that mimic the returns of an index such as the Nifty 50 or Sensex.

The assets under management (AUM) of ETFs rose Rs 1.1 trillion, or 39 per cent, during the first nine months of 2021-22 (FY22) to Rs 4.02 trillion, data provided by NSE Indices showed. Folios of ETF investors grew by 2.6 million, or 62 per cent, during the nine-month period.

Fund houses launched 19 new ETFs between April and December 2021. Net inflows into these ETFs stood at Rs 59,143 crore. Currently, nearly 93 per cent of the AUM into ETFs is held by corporations. Retail and high-networth individuals (HNIs) hold assets worth Rs 4,777 crore and Rs 18,873 crore, respectively. However, 98 per cent, or 6.77 million, folios belong to retail investors.

About Rs 3.26 trillion of ETF assets are in equity, Rs 57,518 crore in debt and Rs 18,405 crore in gold. Currently, the biggest ETF is SBI ETF Nifty 50 with assets of Rs 1.23 trillion at the end of December 31, 2021.