NSE lists 100th Exchange Traded Fund

Our Bureau Mumbai | Updated on July 05, 2021

Asset under management increased 14 times to ₹3.16 lakh crore against ₹23,000 crore logged in April, 2016

Exchange traded funds (ETFs) listed on NSE touched 100 with the asset under management increasing 14 times to ₹3.16 lakh crore against ₹23,000 crore logged in April, 2016. Though it took 19 years for the exchange to hit new milestone, it gained traction last year with 21 ETFs getting listed in a year.

No of investors double

The average daily turnover of ETFs on NSE was pegged at around ₹265 crore last financial year. The number of investors transacting in ETFs had doubled last fiscal to 40 lakh. The first 3 months of FY’22 has already seen transactions of over 22 lakh investors. 

Nifty continues to be the most post popular index with 17 asset management companies launching ETFs on this index. The other popular equity indices for launching ETFs include Nifty Bank and Nifty Next 50 indices.

Also read: Sensex, Nifty to see flat opening amidst mixed global cues

There are 11 ETFs with the underlying assets as gold with over 12 lakh investors transacting in gold ETFs. The asset under management (AUM) in gold ETFs increased 2.5 times in last five years to ₹16,624 crore. 

Debt oriented ETFs has AUM of about ₹40,230 crore and 13 ETFs are listed on NSE with underlying investments in government securities. The most popular corporate bond ETFs are on the Bharat Bond Index series with AUM of about ₹34,000 crore.

Government has reduced securities transaction tax on ETFs to just 0.001 per cent applicable only during selling of the units. Further, STT is not applicable to the non-equity-oriented ETFs.

Vikram Limaye, Managing Director, NSE said exchange traded funds are simple and low-cost investment options, particularly for small and first-time investors to take exposure to equity markets through participation on the stock exchanges.

Apart from retail investors, participation of provident/pension funds in equity markets through ETFs and Government using ETFs for their disinvestment programmes have given a big boost to the ETF industry, he said.  

Published on July 05, 2021

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