AUM of ETFs, Index Funds tracking Nifty 50 cross Rs 2 lakh cr in India

The National Stock Exchange on Wednesday said Assets Under Management (AUM) of all the Exchange Traded Funds and Index Funds tracking Nifty 50 Index have crossed Rs 2 lakh crore.

Also, it has been a landmark year for the Indian ETFs industry, as it had registered a record fund inflows of Rs 1.28 lakh crore in 2021-22, according to a release.

Nifty 50 index linked ETFs account for 40 per cent share of total AUM of ETFs and Index Funds in India.

”We are encouraged by the investors’ continued confidence demonstrated through their investment in passive funds linked to the 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 said.

The first ETF was launched in India in December 2001 and was linked to Nifty 50. The asset base of ETFs surged from Rs 52,368 crore as on March 2017 to Rs 4.99 lakh crore as on March 2022, indicating an annualised growth rate of 57 per cent, as per the release.

Also, the number of ETFs climbed from 84 to 228 as on March during the same period.

The release said there are 17 ETFs and 19 index funds in India and 7 ETFs trade in the international markets tracking Nifty 50.

“Adoption of ETFs in India is increasing on a continuous basis as evident from the large number of new folios created in the last couple of years. Inflows into the passive funds have been strong in the last financial year and trading volumes of ETFs are also rising steadily,” NSE Indices CEO Mukesh Agarwal said.

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