ETF Securities, Australia has launched the first Indian ETF in Australia. Reliance Nippon Life Asset Management Limited (RNAM) has entered in an arrangement to provide advisory services to Australian investors.
Listed today on the Australian Securities Exchange with the code NDIA, the ETF will provide Australian investors a unique opportunity to tap into the world's fastest-growing major economy.
NDIA tracks India's NIFTY 50 Index, which holds the country's fifty biggest companies listed on the National Stock Exchange (NSE). It accounts for 13 sectors representing about 66.80% of the free float market capitalization of the stocks listed on the NSE.
RNAM took over the schemes of Goldman Sachs (India) in 2016 with an AUM of 24,546 crore as of 31st May, 2019 and has 60% of ETF folio share as of 31st March, 2019, highest number of ETF folios in the industry. RNAM has been a pioneer in the Indian ETF Market with over 17 years of experience in managing ETFs in India. With a comprehensive range of Equity, Debt, Gold and International ETF (Reliance ETF Hang Seng BeES), Committed to offering exciting investment opportunities to domestic as well as the foreign investors, RNAM has been the first to conceive the concept of Gold ETFs in 2002, first Money Market ETF in the world and was also the first to conceptualize and launch the CPSE ETF with Government of India in 2014.
RNAM's ED & CEO, Sundeep Sikka, said his company was delighted to collaborate with ETF Securities in order to provide advisory services for allowing Australian investors to participate in "the India growth story."
"RNAM has always been at the forefront of the Indian ETF Industry. It is now the first Indian AMC to partner with an International asset manager to bring investments into India through the ETF route. NDIA will provide Australian investors access to the Nifty 50 Index which has been the torch bearer of Indian equities for the last 25 years and is considered to be 'the Stock of the Nation,'" Mr. Sikka said.
"India has been the most dynamic economic growth story globally, but, until now, it has been difficult for investors globally to access," said Kris Walesby, Head of ETF Securities Australia. "This product offers investors the chance to gain exposure to a $US2.6 trillion economy that still has tremendous potential to grow as India reaps the benefits of structural reforms," Mr. Walesby said.
"Political stability may allow the benefits of recent reforms to Goods and Services Tax and bankruptcy laws to continue filtering through in the form of stronger earnings performances by India's major companies," he said.
Another positive is the fact that 60% of India's GDP is driven by domestic private consumption (compared to 40% in China), effectively insulating the economy against external shocks, Mr. Walesby said.
Shares of Reliance Nippon Life Asset Management Ltd was last trading in BSE at Rs.219.8 as compared to the previous close of Rs. 219.65. The total number of shares traded during the day was 61739 in over 486 trades.
The stock hit an intraday high of Rs. 220.5 and intraday low of 219.35. The net turnover during the day was Rs. 13598103.