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Three fund houses- Bajaj Finserv MF, DSP MF and Zerodha MF have launched their respective ETFs. Let us look at them.
Bajaj Finserv Mutual Fund
Bajaj Finserv MF has launched its first two ETFs- Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF, which will invest in large-cap companies across sectors and banking stocks, respectively.
The NFOs for both schemes open on Jan 15 and close on Jan 18.
In the press release, Ganesh Mohan, CEO, Bajaj Finserv MF said, “The Nifty50 ETF reflects our commitment to provide large cap investment options, while the Nifty Bank ETF, comprising leading banking stocks, offers opportunity to participate in a sector which is the backbone of the Indian economy. Both products embody a diverse basket of products that cater to a variety of investor needs."
Nimesh Chandan, CIO, Bajaj Finserv MF said, “These ETFs offer investors more affordable, rule-based, zero-bias strategies that focus on keeping investing very simple. We feel this is a right time to launch Nifty Bank ETF as the banking sector is poised to record substantial growth in the coming years. Similarly, Bajaj Finserv Nifty 50 ETF is suitable for new investors who are looking to participate in equity markets with a reasonably diverse large cap portfolio.”
DSP Mutual Fund
DSP MF has launched a thematic ETF - DSP Nifty Healthcare ETF, an open-ended scheme that invests across pharmaceuticals, hospitals, pathology, healthcare research analytics & technology. The scheme will adjust every 6 months to represent the top 20 stocks in the health sector.
The NFO opens on Jan 11 and closes on Jan 25.
In the press release Anil Ghelani, CFA, Head – Passive Investments & Products, DSP MF said “Healthcare is a structural growth story, both for financial growth of companies in the sector, as well as for growing wellness for us individually on account of medical advancements. Many Indian healthcare companies have a good long-term potential to grow profitably over time and ambitious government measures like ‘Ayushman Bharat’ as part of a conducive policy are expected to spur growth in the sector. You can consider taking advantage of the potential growth of this sector by investing in a low cost, passively managed index fund. While the Nifty Healthcare Index is diversified across pharmaceuticals, hospitals, pathology and healthcare research and technology, being a sector fund, it could have relatively higher risk commensurate with the return potential.”
Zerodha Fund House
Zerodha MF has launched Zerodha Nifty 1D Rate Liquid ETF. The minimum application amount for the Zerodha Nifty 1D Rate Liquid ETF is Rs. 500.
Vishal Jain, CEO, Zerodha MF said, “This new product marks the arrival of liquid ETFs that offer a growth NAV and this feature makes it easier to track the ETF's performance. Additionally, the returns are taxed only when the ETF is sold, as compared to daily dividend which is taxed continuously. To further enable more retail investors, the ETF will have a lower ticket size, starting with a NAV of Rs.100."
