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NEW DELHI :
The National Stock Exchange (NSE) on Wednesday stated asset base of all of the exchange-traded funds (ETFs) monitoring Nifty 50 index in the nation has crossed ₹1 lakh crore, which signifies rising traders’ curiosity in such merchandise.
Also, the whole assets underneath administration (AUM) of the ETF (fairness and debt) have reached ₹2 lakh crore, the NSE stated in a press release.
According to the alternate, ETF investments are witnessing good development primarily resulting from transparency, diversification and price effectiveness.
“We are encouraged by the investors’ continued confidence demonstrated through their participation in ETFs linked to Nifty 50 and other Nifty Indices…NSE will continue to actively promote ETFs to retail investors through multiple channels,” NSE Managing Director and Chief Executive Officer Vikram Limaye stated.
The first ETF was launched in India in December 2001 and was linked to Nifty 50. However, the precise development in the ETF AUM has occurred solely in the previous 5 years, whereby the asset base of ETFs has surged from ₹7,032 crore as on August 2015 to ₹2.07 lakh crore as on August 2020, indicating an annualised development fee of 97 per cent.
Also, the variety of ETFs has additionally climbed from 36 to 82 as on August through the interval.
In March 2014, the federal government determined to take the ETF route for disinvestment by way of CPSE ETF. Further, the Employees’ Provident Fund Organisation (EPFO) began to speculate a part of its funds in equities by way of the route in August 2015.
The alternate believes these had been vital measures and significant stepping stones for the success of the Indian ETF business.
It, additional, stated that Nifty indices have about 77 per cent market share in phrases of asset base (fairness and debt) of the ETF business in the nation. Additionally, there are 11 ETFs on Nifty indices which can be traded in the worldwide markets.
“Nifty 50 and various other Nifty indices have been well accepted and recognized for launching ETFs in India. In addition to Nifty 50, there are 25 other Nifty indices on which ETFs are available in India,” NSE Indices CEO Mukesh Agarwal stated.
“We will continue to work with various stakeholders in developing new indices, including Debt Indices, to facilitate new ETFs that will offer a variety of investment products to investors,” he added.
This story has been printed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
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