You must have watched on television or read in the papers as to how emerging market ETFs have been driving flows into India. Have you wondered what are these emerging market ETFs and what role do they play in a country like India? Let us first look at the concept of an emerging market ETF
We all know about stock splits wherein the face value of a stock is split or reduced say from Rs.10 to Rs.5 or Re.1 or so. Since each ETF that is created is similar to individual stocks, ETFs are also open to splits of its face value. Recently, the face value of ETFs from Nippon
ETF’s are basically close ended index mutual funds, whose shares can be traded in stock market like shares of companies (intra-day trading is also possible). Like index funds, ETF’s also simply mimic their underlying index. How they do it? ETF’s buy all securities in the “same proportion” as that of its underlying index. Nifty 50 can
Bharat Bond ETF the first of its kind in debt ETF in India is set to hit the market on 13th December and will be kept open till 20th December. On December 4th, Indian government launched the bond ETF to provide additional funds for public sector undertakings and to increase retail participation. ETFs are passive
The Securities and Exchange Board of India (SEBI) issued its draft norms for debt ETFs (exchange traded funds) on 29th November. This set the tone for the introduction of passive debt funds in India. Passive equity funds in the form of index funds and index ETFs are quite popular. What was missing from the palate
Gilt edged securities are those low risk securities issued by the government of a country. In India, the government issues securities of various maturities to raise money for their development agenda. What should investors prefer since direct investment in G-Secs can be quite complicated and institutional. There are two options to participate in government securities;
Comparing index mutual fund and ETF is similar to apple versus apple comparison. We shall compare index mutual funds and ETFs since both are essentially passive strategies to invest in the markets. But what exactly is passive investing? As the name suggests, the very purpose of passive investing is to remain passive and just mirror.
In the last few years the CPSE ETF has emerged as a major tool of investing indirectly in the public sector enterprises. Additionally, it is also a tool for supporting the government divestment program and the government has set aggressive targets of nearly Rs.105,000 crore in the current fiscal too. But what exactly is this
With the global uncertainty rising in the light of the trade war and the rising geopolitical risk in the Middle East, there is an increasing demand for gold as an asset class. Gold is normally known to hold value better in uncertain time and that is evident from the way gold prices have moved in
The Sensex recently completed 40 years of existence. If you look back at its journey over the last 40 years, it has moved from a level of 100 in 1979 to 41,000 in 2019. That is a 410 bagger over 40 years. That roughly translates into annual returns of 16.5% on a compounded basis (CAGR).