Efficient access to India’s leading benchmark
ETFS Reliance India Nifty 50 ETF (ASX code: NDIA) offers exposure to the emerging Indian economy through its premier benchmark, the Nifty50 Index.
NDIA aims to provide investors with a return that (before fees and expenses) tracks the performance of the Nifty50 Index. NDIA uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index closely in proportion to their index weights.
The Nifty50 Index is weighted by market capitalisation and represents 50 of the largest and most liquid blue-chip companies listed on the National Stock Exchange of India (NSE).
Why Consider NDIA?
Simple, cost-efficient access to the growth of the Indian stock market
Access to a market that is difficult for Australian’s to invest in directly.
The Nifty50 includes India’s largest, blue-chip companies but also represents over 60% of the market capitalisation of the entire Indian stock market.
Liquid and transparent
What sort of companies does NDIA invest in?
NDIA invests in the 50 largest companies by market capitalisation listed on the NSE. To provide some examples:
HDFC Bank is one of the largest companies in the Nifty50. It is one of the largest banks and the largest private sector lenders in India. Its distribution network spans the country with over 5,000 branches and over 13,000 ATMs. HDFC Bank is amongst the top three players in auto and personal loans, commercial vehicles, cash and supply chain management.
Hindustan Unilever (HUL) is one of the largest consumer goods providers in India, with a powerful brand and envious distribution network. HUL’s portfolio of products covers a wide spectrum including soaps, detergents, skin creams, shampoos, toothpastes, tea, coffee and packaged foods. An investment in HUL is a play on consumption growth in India and is boosted by improved personal care and strong growth in processed foods and beverages.
How can I use NDIA in a portfolio?
NDIA can be used in portfolios to provide either a core or tactical allocation to India and emerging markets.
Am I exposed to any foreign currency in NDIA?
Yes. NDIA is unhedged, meaning you are exposed to the currency movements between the Australian dollar and Indian rupee. If the rupee appreciates against the Australian dollar, this will positively impact NDIA’s performance. If the rupee depreciates against the Australian dollar, this will negatively impact NDIA’s performance.
What does ‘Reliance’ in the fund name refer to?
ETF Securities has entered into a distribution partnership with Nippon India AMC, formerly known as Reliance Nippon Asset Management, with respect to NDIA. Nippon India AMC provides us with expertise and quality research relevant to the Indian stock market and the wider Indian economy and helps us service the needs of our investors.
Why invest in India specifically and not through a broad emerging markets fund?
As of 2019, the Indian economy is the 7th largest in the world and is forecast to become the 3rd largest by 2030 according to research by Standard Chartered. Furthermore, India’s population is the second largest in the world in 2019, currently at over 1.3 billion, and is set to overtake China’s population by 2027, according to the United Nations 2019 World Population Prospects report. On the other hand, India’s market capitalisation represents less than 3% of global equity markets. As such, the major emerging markets indices and many emerging markets funds include only a small allocation to India. Investors who subscribe to the view that India’s growth potential is greater than its current market size can use NDIA to increase their portfolio’s allocation to India to their desired level.
|Date (NAV)||21 Sep 2020|
|Fund inception date||19 Jun 2019|
|Management Costs (% p.a.)||0.85|
|Maximum cost recoveries (% p.a.)||0.15|
|Legal Form||Managed Investment Scheme|
|Bloomberg Code||NDIA AU Equity|
|Trading hours||10:00AM – 4:00PM|
|Issuer||ETFS Management (AUS) Limited|
|Custodian||JPMorgan Chase Bank N.A. (Sydney Branch)|
|Registrar||Computershare Investor Services Pty Limited|
|Benchmark||NSE Nifty 50 Index|
|Distribution per unit |
|Portfolio composition file - ETFS Reliance India Nifty 50 ETF||22 Sep 2020|
|Factsheet NDIA||14 Sep 2020|
|Condensed Financial Report - For the half-year ended 31 December 2019||12 Mar 2020|
|ETFS Product Disclosure Statement||02 Mar 2020|
|Distribution Reinvestment Policy||02 Mar 2020|