Share surge: Domestic exchange-traded funds' assets top Rs 2 trilion

Assets under management (AUM) for domestic exchange-traded funds (ETFs) have crossed the Rs 2-trillion mark. 

In the past five months of FY21, AUM have surged more than Rs 60,000 crore, or 41 per cent. 

A large portion of this was driven by the surge in share prices, while net inflows were also healthy at Rs 20,000 crore. 

 

Further, more than half a million new ETF folios were opened. Market players said the huge number of actively-managed schemes in the large-cap space have failed to outperform the Nifty and Sensex in the past few years. 

As a result, a lot of investors are turning to ETFs. In the past five years, AUM for ETFs have jumped nearly 5x. 

At present, the Nifty remains the most popular index for ETFs, with assets crossing Rs 1 trillion. Sensex is the second-most popular, with nearly Rs 40,000 crore in AUM.