AUM of ETFs tracking Nifty 50 index in India has crossed the milestone of Rs. 1 lakh crore. Also, the total AUM of the ETF (equity & debt) industry in India has crossed Rs 2 lakh crore.
NSE said that ETF investments in India are witnessing good growth primarily due to transparency, diversification and cost effectiveness. EPFO is the major contributor in this growth which started to invest a part of its funds in equities through the ETFs in August 2015.
The first ETF was launched in India in December 2001 and was linked to Nifty 50. However, the actual growth in the ETF AUM has happened only in the last five years during which ETF AUM in India has grown from Rs. 7,032 crore as on August 31, 2015 to Rs. 2.07 lakh crore as on August 31, 2020. During this period, the number of ETFs available in India have also grown from 36 as on August 31, 2015 to 82 as on August 31, 2020.
Currently, Nifty indices have about 77% market share in terms of AUM (equity & debt) of the ETF industry in India.
Mukesh Agarwal, CEO, NSE Indices Ltd. said, “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 believes in product innovation and we will continue to work with various stakeholders in developing new indices, including debt Indices.”
