ETMarkets.comThe research reveals that the substantial share of Rs 6.95 lakh crore out of the entire Rs 53.40 lakh crore signifies a shift in direction of extra traders selecting ETFs as a most well-liked 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 traders. The rise within the variety of ETF accounts, significantly amongst retail traders, suggests a democratization of funding alternatives. This pattern may very well be attributed to the advantages of ETFs, similar to decrease prices, diversification, and ease of buying and selling.
ETMarkets.comThe buying and selling quantity of ETFs has proven constant development, indicating enhanced liquidity and investor participation within 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 improve of over 600% displays rising investor confidence and the maturation of the ETF market in India. Within the final one yr, the buying and selling quantity of ETFs has seen a major development of roughly 64,000 crores.
The research reveals that the ETFs on high three broad indices i.e., Nifty 50 ETF, Nifty Subsequent 50 ETF and Nifty Midcap 150 ETF, alone contribute greater than 99% of whole AUM amongst broad indices within the Fairness ETF schemes. Nifty 50 ETFs emerge because the main contributor among the many broad based mostly indices with 95% of the entire AUM in Fairness 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 Subsequent 50 and Rs 2,284 crores in Nifty Midcap 150.The distribution of AUM throughout varied indices reveals a diversification pattern amongst fairness ETF traders, in line with the research.
“The ETF market in India is poised for continued development. As extra traders acknowledge some great benefits of ETFs, the section is prone to see elevated inflows and diversification. The pattern in passive investing is anticipated to persist, pushed by retail traders within the coming years, as passive merchandise are simple to know, clear & inexpensive,” stated Vishal Jain, CEO Zerodha Fund Home.
Total, Fairness ETF schemes encompass eight broad based mostly indices and 40 schemes as on date. The consists of 18 schemes below Nifty 50 ETF, 7 in Nifty Subsequent 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 Fairness 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 probably the most substantial development, highlighting a powerful investor choice for equity-based ETFs.
Debt ETFs have additionally seen important development, from Rs 1,497 crores in March 2017 to Rs 96,163 crores in March 2024. The expansion in Debt ETFs has accelerated significantly from March 2019 onwards, indicating an rising 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 development in Fairness (1200%+) and Debt (6300%+) ETFs.
Zerodha Fund Home’s newest schemes – Zerodha Nifty 100 ETF and Zerodha Nifty Midcap 150 ETF, open-ended, passive, fairness Alternate Traded Funds (ETFs) have been listed on the exchanges as on 19 June 2024.
ETMarkets.comThe Nifty 100 ETF permits traders to get entry to the highest 100 firms based mostly on full market capitalization which might be a part 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 Might 31, 2024.
The Nifty Midcap 150 ETF provides traders entry to a diversified portfolio of rising firms that will have good development alternatives and may 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 Might 31, 2024.
