Edelweiss Mutual Fund Launches First ETF of India for Sectors like Capital Markets and Insurance
Radhika Gupta’s Edelweiss Mutual Fund has introduced the Edelweiss BSE Capital Markets and Insurance ETF, India’s first exchange-traded fund (ETF) focused only on the capital markets and insurance sectors.
This open-ended fund will track down the BSE Capital Markets and Insurance Total Return Index, giving investors a simple way to invest in these growing industries and diversify their portfolios.
This ETF’s NFO is now open for subscription from December 10 and will remain open till December 24, 2024.
A Unique Investment Opportunity
With an option like an ETF, investors can easily partake in the growth prospect of India’s changing capital and insurance markets. Investing in this fund allows people to invest in businesses that are expected to grow as more savings in India are moved into financial products.
The focus of ETF is on three key factors mainly – young people, digital technology, and increasing wealth for driving growth in India. These factors are expected to encourage more people to use mutual funds, buy shares, and get insurance across the country.
1. It is India’s first ETF specifically designed for the capital market and insurance industries, created for investing in the growing tendency of increasing the inflow of money into financial products, especially with capital markets and insurance companies in view.
2. This ETF has a diversified portfolio. The ETF’s portfolio is split between capital markets (47.21%) and insurance (52.79%), covering a range of businesses such as asset management companies, insurance providers, and financial product distributors.
3. The main companies in the ETF include HDFC AMC, Angel One, Multi Commodity Exchange of India (MCX), SBI Life Insurance, ICICI Lombard, and Anand Rathi Wealth.
4. The ETF shall consist of 30 maximum stocks. It will be selected from those having a market value for the past six months.
5. The ETF’s portfolio shall be rebalanced twice in a year. That is, during June and December. Then the ETF shall be adjusted every three months to keep performing well.
Fund Information
- Scheme Name: Edelweiss BSE Capital Markets and Insurance ETF
- Category: Open-ended scheme tracking the BSE Capital Markets & Insurance TRI
- Benchmark: BSE Capital Markets and Insurance TRI
- NFO Period: December 10 to December 24, 2024
- Unit Value: 1/100th of the BSE Capital Markets & Insurance Index
- Fund Manager: Bhavesh Jain
Minimum Investment Amount
- Minimum Investment during NFO: Rs.5,000, thereafter multiple of Rs 1.
- Continuing Trades: On NSE and BSE, investors can buy or sell one unit at a time during trading hours. There is an option for large investors to deal directly with the AMC if they trade at least 25,000 units, worth Rs.25 crore or more.
- Market Maker Trades: Market makers are also allowed to trade directly with the AMC in lots of 25,000 units.
The portfolio of the ETF is diversified across several financial segments. The largest allocation is to life insurance at 37.57%, followed by portfolio asset management at 15.53% and stockbroking and allied services at 14%. Other investments include exchanges and data platforms at 10.96% and financial product distributors at 1.70%. Important companies in the fund are HDFC Life at 10.30%, SBI Life at 8.86%, and Multi Commodity Exchange at 7.86%.
This is the first of many themed ETFs created to support India’s economic growth as the country aims to become fully developed by 2047. The goal is to focus on new ideas, spreading investments, and creating wealth to meet the changing needs of Indian investors.
