INSUBCONTINENT EXCLUSIVE:
NEW DELHI: India's ETF industry is in for a bright future if NSE MD and CEO Vikram Limaye's assessment is any indication
"We expect the Indian ETF asset size to grow multi-fold over the next few years and cross Rs 1 Lakh crore before December 2018-end," Limaye
positive on the growth prospects of ETFs in India and is closely working with all stakeholders to further develop ETF market in India
to make this low-cost investment product popular among retail investors
Exchange traded funds (ETFs) are a group of securities that are traded like individual stocks on an exchange
These can track indices of various asset classes such as equity, fixed income, commodities and the like.
"Availability of relevant market
representative indices plays a pivotal role in furthering ETF growth
It has been our endeavour to develop innovative indices representing various investment strategies covering multiple asset classes
Nifty indices are the most preferred benchmarks for ETFs in India
of this product in the country," Limaye added
He highlighted the critical role such programmes play in raising awareness about ETFs.
Apparently, the NSE's efforts in this regard are not
Investment and Public Asset Management, who delivered the keynote address at the event
He added: "The ETF route shall now be increasingly used by various stakeholders, including by the government to continue monetising their
holdings in public sector enterprises and also by PSUs to raise debt in a more cost-effective manner."
The first ETF in India was launched
in December 2001 which was benchmarked to the Nifty50
From there on, ETF market in the country saw a strong growth trajectory both in terms of total AUM and number of ETFs
The asset under management (AUM) of domestic equity and debt ETFs has grown at a stellar rate of nearly 28 per vent per annum over the last
discussions -- the first one on Indian ETF industry: Growth Trajectory, Challenges and Way Forward and the second panel on Smart Beta ETFs:
Global landscape and growth potential in India.
