Exchange-Traded Funds slightly risen in the last 5 years 

Exchange-Traded Funds slightly risen in the last 5 years 

Exchange-Traded Funds slightly risen in the last 5 years

Exchange-Traded Funds, also a type of security that engages in the collection of securities. ETF contains stocks, commodities, bonds, and a mixture of investment types. According to the expert audit, the ETF schemes reporters around a 30 times increase in the last 5 years. In the last one year, pension funds have raised awareness in the investors.

Anyhow, the ETFs are received low investments from the retailers as compared to the other mutual fund schemes.

As of August 2020, the ETF AUM stood at Rs. 2.07 lakh crores. In Nifty50 ETFs have AUM of Rs. 1.02 lakhs, said a source.

According to the reports, the first ETF scheme was launched on 1st December 2001. Although, the ETF industry’s fund flow was very low from December 2001 to August 2015. The industry brings up the business in the last 5 years. 

Further, the ETF returns are very close to market returns and also much to cross the other mutual fund scheme returns, added by an expert. 

Besides, these funds available at low cost with an investment ratio of 0.05 percent. 

Even in the COVID pandemic, AUM has raised over Rs. 60,000 crores in the current financial year. In terms of percentage, it raised around 41 percent.  Moreover, the net inflows also strengthen at Rs. 20,000 crores. 

Besides, the ETF received about half a million new folios during the year. In the past years, the maximum of the large-cap schemes has failed to generate returns in Nifty and Sensex. 

According to the source, the Nifty has been the most active index in the ETF segment. It has an AUM of Rs. 1 trillion. Besides, the Sensex has an AUM of  Rs. 40,000 crores. 

ETF AUM details:

However, the asset under management for Exchange-Traded funds increased nearly 5 times in the last 5 years. 

As of the reports, SBI mutual fund operates an ETF AUM of Rs. 75,911 crores, which is the biggest one in the Nifty index. Besides, UTI MF maintains Rs. 18,481 crores, Nippon MF kept Rs. 2,888 crores AUM. Moreover, ICICI MF and Kotak mutual funds have an AUM of Rs. 1,506 crores and Rs. 1,160 crores.

Year – AUM (in Rs. crores) No. of ETs Inflows (in Rs. crores) New Folios
2017 44,436 51 24,054 2,79,317
2018 72,888 56 23,958 2,00,930
2019 1,34,626 66 43,351 3,19,068
2020 1,46,462 76 59,809 8,28,766
2021 (present) 2,06,680 82 19,778 6,02,470

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