The Invesco India Nifty ETF is designed to replicate the performance of the Nifty 50 Index, which comprises 50 leading blue-chip companies listed on the National Stock Exchange (NSE) of India. This ETF offers investors a cost-effective and transparent way to gain exposure to India’s top-performing large-cap stocks.
Key Features:
- Objective: To closely mirror the returns of the Nifty 50 Index by investing in its constituent stocks in the same proportion.
- Structure: As an open-ended ETF, it is listed on the NSE under the ticker symbol IVZINNIFTY, allowing investors to buy and sell units during trading hours through brokers.
- Expense Ratio: The fund maintains a low expense ratio of 0.10%, enhancing cost efficiency for investors.
- Minimum Investment: Units can be purchased in multiples of 1, with a minimum investment of ₹5,000.
- Risk Profile: The ETF carries a ‘Very High’ risk rating, aligning with the inherent volatility of equity markets.
Performance:
As of December 24, 2024, the Net Asset Value (NAV) of the Invesco India Nifty 50 ETF was ₹2,669.8860.
The fund has delivered a Compound Annual Growth Rate (CAGR) of 12.47% since its inception, reflecting its alignment with the Nifty 50 Index’s performance.
Invesco India Nifty ETF Top Holdings
- HDFC Bank: 12.58%
- ICICI Bank: 8.45%
- Reliance Industries: 8.09%
- Infosys: 6.17%
- ITC: 4.09%
Suitability:
This ETF is suitable for investors seeking capital appreciation over the long term through exposure to India’s leading large-cap companies. It is particularly appropriate for those looking to invest in a diversified portfolio of top-performing Indian stocks without the need for active management.
Invesco India Nifty ETF Share Price
| Attribute | Value |
| Net Asset Value (NAV) | ₹2,701.00 |
| Expense Ratio | 0.10% |
| Fund Size | ₹90.06 Crore |
| Category | Equity: Large Cap |
| Launch Date | June 13, 2011 |
| Benchmark | NIFTY 50 Total Return Index |
| Risk Profile | Very High |
The ETF aims to closely mirror the performance of the Nifty 50 Index, comprising 50 leading large-cap companies listed on the National Stock Exchange (NSE) of India.
How to Invest:
Investors can purchase units of the Invesco India Nifty ETF through the NSE during trading hours via their brokers. Additionally, the fund can be subscribed or redeemed in creation unit sizes (5,000 units and in multiples thereof) directly with the fund house at prevailing NAV, a facility available to market makers and large investors.
Important Considerations:
- Liquidity: Being listed on the NSE, the ETF offers liquidity, allowing investors to buy and sell units during market hours.
- Taxation: Gains from the ETF are subject to capital gains tax, with specific rates depending on the holding period. Dividends received are added to the investor’s income and taxed according to their applicable tax slab.
- Market Risk: As with all equity investments, the ETF is subject to market risks, and past performance does not guarantee future results.
Advantages:
(1) Exposure to India’s Top Companies:
- The ETF tracks the Nifty 50 Index, providing exposure to 50 leading large-cap companies in India, such as HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and ITC. These are some of the strongest and most well-established companies in India’s stock market.
(2) Diversification:
- The fund is inherently diversified as it replicates the Nifty 50 Index, allowing investors to invest in a broad range of sectors (financials, IT, energy, etc.), thus spreading the risk.
(3) Low Expense Ratio:
- The ETF has a relatively low expense ratio of 0.10%, making it cost-effective compared to actively managed funds.
(4) Liquidity:
- Being listed on the National Stock Exchange (NSE), the ETF can be traded like a stock, providing high liquidity. Investors can buy and sell units during market hours, unlike some other mutual funds that are only priced at the end of the day.
(5) Passive Investment:
- The fund is passively managed, meaning it seeks to replicate the performance of the index rather than actively selecting stocks. This reduces the management costs and minimizes the chances of underperformance compared to active funds.
Is it a Good Investment?
- Long-Term Growth: If you believe in India’s growth story and are looking for a low-cost, diversified investment to gain exposure to top Indian companies, this ETF could be a good fit.
- Risk-Tolerant Investors: If you’re willing to accept short-term volatility and are focused on the long-term potential of India’s market, the Invesco India Nifty 50 ETF could help you achieve your financial goals.
- Diversification: It provides an efficient way to diversify a portfolio by adding exposure to India’s stock market without the need to pick individual stocks.
If you have a long-term investment horizon and are comfortable with equity market risk, this ETF could be a strong choice for your portfolio. However, if you’re risk-averse or have a short-term investment goal, you might want to consider other options. It’s always advisable to align any investment decision with your financial situation and goals, and consider consulting with a financial advisor.
Invesco India Nifty ETF Return
Here is the return table for the Invesco India Nifty 50 ETF:
| Time Period | Return (%) |
| 1 Year | 9.92 |
| 2 Year | 33.22 |
| 3 Year | 12.89 |
| 5 Year | 54.80 |
| Since Inception | 12.47 |
Comparison with Peers:
When compared to other Nifty 50 ETFs, the Invesco India Nifty 50 ETF’s 1-year return of 9.92% is slightly below the category average of 16.8%, placing it in the 92nd percentile. Over a 3-year period, its return of 12.89% is also below the category average of 13.8%, ranking it in the 68th percentile.
Considerations:
- Expense Ratio: The ETF has a low expense ratio of 0.10%, which can enhance net returns over time.
- Risk Profile: The fund carries a ‘Very High’ risk rating, aligning with the inherent volatility of equity markets.
- Investment Horizon: For investors with a long-term investment horizon, the ETF has the potential to provide returns that comfortably beat the inflation rate and outperform fixed income options.
Conclusion:
The Invesco India Nifty ETF offers a cost-effective way to gain exposure to India’s top-performing large-cap companies. While its recent performance is slightly below the category average, it remains a viable option for investors seeking long-term capital appreciation through a diversified portfolio of leading Indian stocks. As always, it’s advisable to align any investment decision with your financial goals and risk tolerance.
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