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First Indian equities ETF launched in Australia

Listed on the Australian Securities Exchange with the code NDIA, the ETF will provide Australian investors an opportunity to tap into the world’s fastest-growing major economy.

ET Online|
Jun 21, 2019, 10.43 AM IST
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ETF Securities, an Australia-based provider of accessible investment solutions, 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, a release from the fund house said.

Listed on the Australian Securities Exchange with the code NDIA, the ETF will provide Australian investors an opportunity to tap into the world’s fastest-growing major economy.

According to the press release, NDIA will track 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.

Reliance Nippon Asset Management’s ED & CEO, Sundeep Sikka, said his company was delighted to collaborate with ETF Securities 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,” 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,” Kris 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. 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,” Walesby added.

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