The research reveals that the substantial share of Rs 6.95 lakh crore out of the total Rs 53.40 lakh crore signifies a shift in direction of extra buyers selecting ETFs as a most popular mode of funding.The rise from 5.33 lakh accounts (throughout fairness and debt EFTs) in 2017 to 1.25 crore in 2023 displays a broader acceptance and understanding of ETFs amongst retail buyers. The enhance in the quantity of ETF accounts, notably amongst retail buyers, suggests a democratization of funding alternatives. This development might be attributed to the advantages of ETFs, corresponding to decrease prices, diversification, and ease of buying and selling.
ETMarkets.comThe buying and selling quantity of ETFs has proven constant progress, indicating enhanced liquidity and investor participation in the ETF market. The buying and selling quantity has surged from Rs 26,139 crore in FY 2016-17 to Rs 1,83,676 crore in FY 2023-24. This enhance of over 600% displays rising investor confidence and the maturation of the ETF market in India. In the final one yr, the buying and selling quantity of ETFs has seen a major progress of roughly 64,000 crores.
The research reveals that the ETFs on high three broad indices i.e., Nifty 50 ETF, Nifty Next 50 ETF and Nifty Midcap 150 ETF, alone contribute greater than 99% of total AUM amongst broad indices in the Equity ETF schemes. Nifty 50 ETFs emerge as the main contributor amongst the broad based mostly indices with 95% of the total AUM in Equity ETF schemes, as of thirty first March 2024. Nifty 50 ETFs have Rs 2,77,471 crores in AUM adopted by Rs 9,628 crores in Nifty Next 50 and Rs 2,284 crores in Nifty Midcap 150.The distribution of AUM throughout varied indices reveals a diversification development amongst fairness ETF buyers, in line with the research.
“The ETF market in India is poised for continued growth. As more investors recognize the advantages of ETFs, the segment is likely to see increased inflows and diversification. The trend in passive investing is expected to persist, driven by retail investors in the coming years, as passive products are easy to understand, transparent & affordable,” mentioned Vishal Jain, CEO Zerodha Fund House.
Overall, Equity ETF schemes consist of eight broad based mostly indices and 40 schemes as on date. The consists of 18 schemes underneath Nifty 50 ETF, 7 in Nifty Next 50 ETF, 5 in Nifty Midcap 150 ETF, 4 in Nifty 100 ETF, 2 every in Nifty Midcap 100 ETF & Nifty Smallcap 250 ETF, and 1 every in Nifty MidCap 50 ETF and Nifty 500 ETF.
ETMarkets.comThe AUM for Equity ETFs has constantly elevated, going from Rs 43,234 crores in March 2017 to Rs 5,63,176 crores in March 2024. This class has proven the most substantial progress, highlighting a powerful investor desire for equity-based ETFs.
Debt ETFs have additionally seen important progress, from Rs 1,497 crores in March 2017 to Rs 96,163 crores in March 2024. The progress in Debt ETFs has accelerated notably from March 2019 onwards, indicating an growing shift in direction of fixed-income securities in recent times.
Gold ETFs have grown steadily, from Rs 5,480 crores in March 2017 to Rs 31,224 crores in March 2024. Between 2017 and 2024, AUM in Gold ETFs has elevated by 470%, which is much less pronounced in comparison with progress in Equity (1200%+) and Debt (6300%+) ETFs.
Zerodha Fund House’s newest schemes – Zerodha Nifty 100 ETF and Zerodha Nifty Midcap 150 ETF, open-ended, passive, fairness Exchange Traded Funds (ETFs) have been listed on the exchanges as on 19 June 2024.
ETMarkets.comThe Nifty 100 ETF permits buyers to get entry to the high 100 corporations based mostly on full market capitalization which might be half of the Nifty 500 universe that are typically thought-about leaders of their respective sectors. The ETF covers ~69% of the free float market capitalization. Since its inception, Nifty 100 TRI has given 17.52% CAGR returns, with 21.49% volatility as of May 31, 2024.
The Nifty Midcap 150 ETF offers buyers entry to a diversified portfolio of rising corporations which will have good progress alternatives and might probably turn into the leaders of tomorrow. This ETF covers 15% of the free float market capitalization. From its inception, Nifty Midcap 150 TRI has given 18.11% CAGR return with 21.10% volatility as of May 31, 2024.