NDIA

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, detergent, skin cream, shampoo, toothpaste, 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.

NDIA can be used in portfolios to provide either a strategic or tactical allocation to India and emerging markets.

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.

ETF Securities has entered into a distribution partnership with Nippon India AMC, 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.

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.