Passive funds tracking Nifty indices see 53% CAGR growth in assets in 10 years; AUM stands at $70 billion

The total asset under management (AUM) of passive funds tracking Nifty indices in India and outside India has increased to about $70 billion in November 2023 from about $1 billion in November 2013, growing at a staggering annualised rate of 53 per cent in the last 10 years, according to Nifty indices. 

In recent developments, seven new passive funds (ETFs/index funds) tracking Nifty indices were launched in Japan and South Korea in 2023. Four products from Daiwa Asset Management, NZ Asset Management, au Asset Management and Sumitomo Mitsui Trust Asset Management tracking Nifty50 were launched in Japan. In addition, two products tracking Nifty50 were launched by Mirae Asset Global Investments and Samsung Asset Management in Korea. One product tracking the Nifty50 2x leverage index was launched by Samsung Asset Management in Korea. According to NSE indices, these new products have garnered Assets under Management (AUM) of about $550 million. 

At present, there are 21 passive funds tracking Nifty indices outside India, and 270 such funds tracking various Nifty indices in the country. 

Ashishkumar Chauhan, MD and CEO, NSE, said, “Investment by large global asset managers is growing in India, given the performance of our economy and favourable demographic profile. With focused efforts of all the stakeholders and expected robust performance of the economy, we will surely progress towards achieving many more milestones in future.” 

Mukesh Agarwal, MD & CEO, NSE Indices, said: “We are seeing a strong demand from global asset managers for launching India-focused passive products. 2023 has been a historic year for NSE Indices with seven passive products launched outside India on Nifty indices during the year and they also garnered good AUM.  We expect this trend to continue and many more India-focused passive products are expected to be launched outside India in 2024 as well. We will continue to work with our clients to launch innovative India-focused indices for the launch of passive products.”