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Collective Investment Vehicles ISMR39

3. Collective Investment Vehicles

IntroductionA collective investment vehicle (CIV) is any entity that allows investors to pool their money and invest the pooled funds, instead of buying securities directly as individuals. The most common types of collective investment vehicles are mutual funds and exchange-traded funds. Collective investment schemes are well established in many jurisdictions, and serve as an investment vehicle for a wide range of investment opportunities around the world.

The International Organization of Securities Commission (IOSCO) in its Report on Investment Management of the Technical Committee defined a collective investment scheme (CIS) as “an open ended collective investment scheme that issues redeemable units and invests primarily in transferable securities or money market instruments.”

The distinct categories of collective investment vehicles in operation in India are, namely, mutual funds (MFs); index funds; exchange traded funds; alternate investment funds (comprising private equity fund, venture capital fund, private investment in public equity (PIPE) fund, debt fund, infrastructure fund, real estate fund, social venture fund, small and medium enterprises fund and strategy fund), which mobilize resources from the market for investment purposes. This chapter discusses growth and performance of the mutual fund industry, exchange traded funds and index funds.

Mutual FundsMutual funds are considered a good route to invest and earn returns with reasonable safety. Some of the other major benefits of investing in them include the options of investing in various schemes, diversification, professional management, liquidity, effective regulations, transparency, tax benefits, and affordability.

The Unit Trust of India (UTI) that was created in 1964 was the first MF in India. It enjoyed complete monopoly in MFs until 1986. Other public sector mutual funds were set up by public sector banks and the Life Insurance Corporation of India (LIC) and the General Insurance Corporation of India (GIC) in 1987. SBI Mutual Fund was the first non-UTI mutual fund established in June 1987. The MF business was progressively opened to competition after 1988. This move gathered momentum in India after economic liberalization in 1991, and the establishment of the SEBI in 1992.

Resource Mobilization

The MF vehicle is quite popular with investors who are wary of directly investing in the securities markets. The popularity of MFs as an investment avenue is clearly visible from the data presented in Table 3-1. The MFs in India have primarily been sponsored by government, banks, and FIs. Thus, the MF schemes of the commercial banks and the insurance companies that entered the market in 1987 were well received. The boom continued into the 90s with liberalization evoking positive responses from the investors. The net resource mobilizations by MFs remained steady during 1992–1995, with the annual net resource mobilization of nearly ` 437 billion per annum during the period. However, the MFs were hit severely by the bearish sentiments in the secondary market since October 1994.

The years 1995–1996 and 1996–1997 witnessed net outflows of funds from MFs. The MF industry managed to mobilize modest sums during the next two financial years. It was in the late 90s and first few years of the next decade that the MF industry witnessed a sharp turnaround. Tax sops announced in the Union Budget 1999–2000 and the emergence

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Collective Investment VehiclesISMR 40

of bullish trends in the secondary market fuelled the recovery. The year 2000–2001 witnessed a slowdown once again, with the net resource mobilization by all MFs taken together aggregating ` 111 billion, which could be attributed to a slump in the secondary market and the increase in the tax on income distributed by debt-oriented MFs. In 2002–2003, the resource mobilization by all MFs together aggregated to a further low of ` 46 billion, with UTI having a net outflow of ` 94 billion. The fiscal years 2003–2004 witnessed a sharp rise in the net resources mobilized compared to the previous year, aggregating ` 478 billion; however the net resources mobilized reduced to ` 28 billion in 2004-05. The uptrend was seen in the fiscal year 2005–2006—the net resources mobilized were ̀ 525 billion. The performance of the private sector MFs was also consistent as compared to the previous year—they mobilized ` 416 billion. (Table 3-1).

The maximum resource mobilization ever was witnessed in 2007–2008, which saw net resources mobilization worth ` 1,485 billion from mutual fund industry, compared to ` 941 billion attracted by the industry in 2006–2007. Due to the global crisis, the resources mobilized by the industry have been quite volatile for the last couple of years. The fiscal year 2008–2009 witnessed a sharp drop in the net resources mobilized compared to the previous year, aggregating ` -246 billion, as private sector MFs witnessed a net outflow of ` 314 billion. The trend was reversed in 2009–2010; the net resources mobilized were ` 785 billion. The year 2010–2011 witnessed a slowdown once again, with the net resource mobilization by all the MFs taken together aggregating ` -488 billion. The mutual fund industry continued to see the decline in net resources mobilization at ` -437 billion in 2011-12.

Table 3-1: Net Resource Mobilised by Mutual Funds

Year UTI Bank Sponsored Mutual Funds

FI-sponsored mutual funds

Private Sector mutual funds

Total Total

` bn (US $ bn)

2000-01 3 2 13 93 111 2

2001-02 -73 9 4 161 101 2

2002-03 -94 10 9 121 46 1

2003-04 11 45 8 415 479 11

2004-05 -25 7 -34 79 28 1

2005-06 34 54 21 416 525 12

2006-07 73 30 42 795 941 22

2007-08 107 76 22 1,280 1,485 37

2008-09 -37 45 60 -314 -246 -5

2009-10 157 99 49 482 785 17

2010-11 -166 13 -170 -165 -488 -11

2011-12P -32 11 -31 -385 -437 -9

P: ProvisionalSource: RBI

Number of Mutual Funds and New Fund Offers

As on March 31, 2012, the number of MFs registered with the SEBI was 49; it remained 49 till the end of September 2012. As against the 1,131 schemes in 2010–2011, there were 1,309 mutual fund schemes as on March 31, 2012, of which 775 were income oriented schemes, 303 were growth/equity-oriented schemes, 30 were balanced schemes. In addition, there were 14 gold exchange-traded funds, 21 other ETFs and 20 schemes operating as fund of funds. During 2011-12, the aggregate sales of all the schemes amounted to ` 68,196,790 million, and the redemptions during the year equalled ` 68,417,020 million (Table 3-2).

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Tabl

e 3-

2: A

ccre

tion

of F

unds

with

Mut

ual F

unds

Cat

egor

y20

10-1

120

11-1

2A

sset

s U

nder

Man

agem

ent

Sale

(` m

n)Pu

rcha

se

(` m

n)N

et(`

mn)

Net

(US

$ m

n)Sa

le(`

mn)

Purc

hase

(`

mn)

Net

(` m

n)N

et(U

S $

mn)

Mar

ch-1

1 #

(` m

n)M

arch

-12

#(`

mn)

Mar

ch-1

2(U

S $

mn)

ABa

nk S

pons

ored

15,

546,

740

15,

683,

960

-137

,220

-3,0

7311

,798

,420

11,8

19,2

50-2

0,83

0-4

071,

227,

980

1,19

6,77

023

,394

i.Jo

int V

entu

res

- Pr

edom

inan

tly

Indi

an

6,1

24,4

00

6,1

16,1

80

8,22

018

44,

660,

910

4,64

9,64

011

,270

220

494,

960

510,

820

9,98

5

ii.Jo

int V

entu

res-

Fo

reig

n 8

89,0

30

894

,230

-5

,200

-116

678,

810

675,

500

3,31

065

25,8

5041

,910

819

iii.

Oth

ers

8,5

33,3

10

8,6

73,5

50

-140

,240

-3,1

416,

458,

700

6,49

4,11

0-3

5,41

0-6

9270

7,17

064

4,04

012

,590

BIn

stitu

tions

4,7

08,2

00

4,8

78,0

80

-169

,880

-3,8

0534

4,90

037

5,88

0-3

0,98

0-6

0611

1,95

057

,990

1,13

4

CPr

ivat

e Se

ctor

(i+

ii+iii

+iv

) 6

8,34

0,21

0 6

8,52

7,17

0 -1

86,9

60-4

,187

56,0

53,4

7056

,221

,890

-168

,420

-3,2

925,

665,

450

5,39

3,16

010

5,42

5

i.In

dian

32,

953,

490

33,

074,

940

-121

,450

-2,7

2024

,990

,930

25,2

16,0

20-2

25,0

90-4

,400

2,41

0,48

01,

905,

840

37,2

55

ii.Jo

int V

entu

res-

Pr

edom

inan

tly

Indi

an

29,

708,

550

29,

720,

000

-11,

450

-256

26,6

12,6

2026

,547

,960

64,6

601,

264

2,54

0,45

02,

744,

870

53,6

56

iii.

Join

t Ven

ture

s -

Pred

omin

antly

Fo

reig

n

2,6

49,9

60

2,6

96,0

20

-46,

060

-1,0

321,

815,

740

1,80

9,47

06,

270

123

167,

730

165,

520

3,23

6

iv.

Fore

ign

3,0

28,2

10

3,0

36,2

10

-8,0

00-1

792,

634,

180

2,64

8,44

0-1

4,26

0-2

7954

6,79

057

6,93

011

,278

Gra

nd T

otal

(A+

B+C

) 8

8,59

5,15

0 8

9,08

9,21

0 -4

94,0

60-1

1,06

568

,196

,790

68,4

17,0

20-2

20,2

30-4

,305

7,00

5,38

06,

647,

920

129,

953

# A

vera

ge a

sset

s un

der m

anag

emen

t for

the

quar

ter J

an-M

ar.

Sour

ce: A

MFI

Upd

ates

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Table 3-3: Accretion of Funds with Mutual Funds

Category April 12 - June 12 Assets Under Management at the end of

Sale( ` mn)

Purchase ( ` mn)

Net(` mn)

Net(US $ mn)

June - 12(` mn)

June - 12(US $ mn)

A Bank Sponsored 3,502,030 3,293,840 208,190 3,813 1,285,650 23,547i. Joint Ventures -

Predominantly Indian1,384,700 1,340,410 44,290 811 569,330 10,427

ii. Joint Ventures- Predominantly Foreign

294,540 271,770 22,770 417 55,110 1,009

ii. Others 1,822,790 1,681,660 141,130 2,585 661,210 12,110B Institutions 46,930 46,540 390 7 59,190 1,084C Private Sector (i+ii+iii+iv) 13,946,800 13,200,190 746,610 13,674 5,583,050 102,254

i. Indian 6,390,090 6,035,750 354,340 6,490 1,945,220 35,627ii. Joint Ventures-

Predominantly Indian6,389,490 6,064,610 324,880 5,950 2,900,290 53,119

iii. Joint Ventures - Predominantly Foreign

422,130 399,500 22,630 414 154,180 2,824

iv. Foreign 745,090 700,330 44,760 820 583,360 10,684Grand Total (A+B+C) 17,495,760 16,540,570 955,190 17,494 6,927,890 126,884

Source: AMFI Updates

Institution-wise Resource Mobilization

The resource mobilization through the route of mutual funds is done broadly by three categories, namely, banks, private sector, and institutions. The structure of the institution-wise resource mobilization is depicted in Table 3-2 and Table 3-3, which gives the details of the sales, purchases (redemptions), and assets under management.

The private sector MFs accounted for 82.2 percent of the resource mobilization (sales) by the MF industry in 2011–2012. These private sector MFs witnessed a net outflow of ` 168,420 million (US $ 3,292 million) in 2011–2012, compared to a net outflow of ` 186,960 million (US $ 4,187 million) in 2010–2011.

In 2011-12, bank-sponsored MFs mobilized resources worth ` 11,798,420 million, which was 24.1 percent lower than the resource mobilization in 2010-11 (` 15,546,740 million). The bank-sponsored schemes accounted for 17.3 percent of the gross resource mobilization in 2011–2012. In net terms, the bank-sponsored MFs witnessed an outflow of ` 20,830 million (US $ 407 million) in 2011–2012.

Resource Mobilization as per Maturity Period/Tenor

The share of open-ended schemes in the total sales of mutual funds in 2011–2012 continued to dominate over the other schemes (such as close-ended and interval funds). The share of open-ended schemes in the total sales of mutual funds was 97.8 percent in 2011–2012, same as last year. Close-ended schemes saw a year-on-year increase in sales of 5.2 percent in 2011–2012 over the previous fiscal year. The details of the sales and redemptions of the mutual funds based on their tenor for 2010–2011 and 2011–2012, are presented in Table 3-4.

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Table 3-4: Resource Mobilisation by Mutual Funds- based on the Tenor of the Scheme

Scheme 2010-11 2011-12

Sale Purchase Sale Purchase Sale Purchase Sale Purchase

(` mn) (US $ mn) (` mn) (US $ mn)

Open-ended 86,657,260 87,889,450 1,940,812 1,968,409 66,705,260 66,855,230 1,303,945 1,306,877

Close-ended 1,288,740 572,160 28,863 12,814 1,355,140 1,320,720 26,490 25,817

Interval fund 649,150 627,600 14,539 14,056 136,390 241,070 2,666 4,712

Total 88,595,150 89,089,210 1,984,214 1,995,279 68,196,790 68,417,020 1,333,101 1,337,406

Source : AMFI Updates

Resource Mobilization as per Investment Objective

The liquid/money market schemes have become very popular among investors due to the attractive returns delivered by them. They accounted for 87.2 percent of the gross resource mobilization in 2011–2012. During the current fiscal year, the sale as well as repurchase was the highest in the case of these schemes, resulting in a net outflow of ` 71,040 million (US $ 1,389 million).

The income/debt-oriented schemes that provide regular and steady income to investors by investing in fixed income securities such as bonds, corporate debentures, government securities, and money market instruments were also popular among investors, and accounted for 11.8 percent of the total sales of all the schemes in 2011–2012 which was less than last year. These schemes witnessed the highest net outflow of ` 185,280 million (US $ 3,622 million).

The scheme-wise resource mobilization by MFs for 2010–2011, and 2011–2012 is depicted in Table 3-5.

Table 3-5: Scheme-wise Resource Mobilisation by Mutual Funds

Scheme 2010-11 2011-12

Sale Purchase Net Inflow/(Outflow)

Net Inflow/(Outflow)

Sale Purchase Net Inflow/(Outflow)

Net Inflow/(Outflow)

(` mn) (US $ mn) (` mn) (US $ mn)

Income 21,728,600 22,095,660 -367,060 -8,221 8,035,650 8,220,930 -185,280 -3,622

Growth 631,420 765,470 -134,050 -3,002 479,210 476,570 2,640 52

Balanced 74,900 61,460 13,440 301 50,270 46,450 3,820 75

Liquid/ Money Market

65,997,240 66,032,440 -35,200 -788 59,464,990 59,536,030 -71,040 -1,389

Gilt 44,500 45,660 -1,160 -26 40,500 40,700 -200 -4

ELSS-Equity 34,500 31,840 2,660 60 26,980 28,400 -1,420 -28

GOLD ETFs 28,430 5,930 22,500 504 52,650 16,190 36,460 713

Other ETFs * 48,670 34,790 13,880 311 32,980 39,210 -6,230 -122

Funds of FundsInvesting Overseas

6,890 15,960 -9,070 -203 13,560 12,540 1,020 20

Total 88,595,150 89,089,210 -494,060 -11,065 68,196,790 68,417,020 -220,230 -4,305

* Thisschemewasearlierclassifiedasgrowthfundsandincludedinthatcategory.Source: AMFI Updates

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Assets under Management

As on March 31, 2012, the MFs have managed assets totaling ` 5,872,170 million (US $ 114,788 million) (Table 3-6). The open-ended schemes and the close-ended schemes accounted for 75.2 percent and 23.4 percent, respectively, of the total assets under management of MFs (Chart 3-1) as on March 31, 2012.

The income schemes accounted for 49.5 percent of the total assets under management at the end of March 2011, followed by the equity schemes with 27 percent. The liquid/money market schemes accounted for 13.7 percent of the assets under management of MFs (Chart 3-1).

Chart 3-1: Assets under Management of Mutual Funds (Jan to Mar 2012) (in percent)

Source : AMFI

Mutual Fund Service System (MFSS)

In November 2009, the SEBI allowed transactions in mutual fund schemes through the stock exchange infrastructure. Consequent to this market development, the NSE launched India’s first Mutual Fund Service System (MFSS) on November 30, 2009, through which an investor can subscribe or redeem the units of a mutual fund scheme.

As many as 30 fund houses have joined the NSE MFSS platform as on March 31, 2012, and there were 1,991 sub schemes available for trading. During April 2011 to March 2012, there were 109,814 orders placed for subscriptions worth ` 4,891 million and 10,662 orders worth ` 3,353 million were redeemed. The trend moved northwards in the April–September period of 2012–2013, when 82,727 orders were placed for subscriptions worth ` 3,882 million, and 11,499 orders worth ` 2,808 million were redeemed (Table 3-7).

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Tabl

e 3-

6: A

sset

s un

der

Man

agem

ent

Sche

me

At t

he e

nd o

f Mar

ch 2

011

At t

he e

nd o

f Mar

ch 2

012

Ope

n

Ende

dC

lose

En

ded

Inte

rval

Fund

#To

tal

Tota

lPe

rcen

t to

to

tal

Ope

n En

ded

Clo

se

Ende

dIn

terv

al

Fund

#To

tal

Tota

lPe

rcen

t to

to

tal

(` m

n)(U

S $

mn)

(` m

n)(U

S $

mn)

Inco

me

1,5

32,2

10

1,2

06,1

00

181

,440

2

,919

,750

6

5,39

2 49

.3 1

,477

,720

1,

350,

990

79,

730

2,9

08,4

40

56,

854

49.5

Equi

ty 1

,676

,200

2

1,21

0 1

30

1,6

97,5

40

38,

019

28.7

1,5

84,0

30

290

-

1

,584

,320

3

0,97

0 27

.0

Bala

nced

173

,600

1

0,85

0 -

184

,450

4

,131

3.

1 1

62,5

00

110

-

1

62,6

10

3,1

79

2.8

Liqu

id/M

oney

Mar

ket

736

,660

-

- 7

36,6

60

16,

499

12.4

803

,540

-

-

803

,540

1

5,70

7 13

.7

Gilt

34,

090

- -

34,

090

763

0.

6 3

6,59

0 -

-

36,

590

715

0.

6

ELSS

224

,880

3

0,81

0 -

255

,690

5

,727

4.

3 2

11,4

90

24,

950

-

236

,440

4

,622

4.

0

Gol

d ET

F 4

4,00

0 -

- 4

4,00

0 9

85

0.7

98,

860

- -

9

8,86

0 1

,933

1.

7

Oth

er E

TFs

* 2

5,16

0 -

- 2

5,16

0 5

63

0.4

16,

070

- -

1

6,07

0 3

14

0.3

Fund

s of

Fun

ds

Inve

stin

g O

vers

eas

25,

160

- -

25,

160

563

0.

4 2

5,30

0 -

-

25,

300

495

0.

4

Tota

l 4

,471

,960

1

,268

,970

1

81,5

70

5,9

22,5

00

132

,643

10

0 4

,416

,100

1,3

76,3

40

79,

730

5,8

72,1

70

114,

788

100

*Thisschemewasearlierclassifiedasgrowthfundsandincludedinthatcategory.

# ThiscategorywasintroducedsinceApril2008.

Sour

ce: A

MFI

Upd

ates

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Table 3-7: MFSS Trade Statistics

Date Subscription Redemption Total orders

No. of orders Total subscription amount (` mn)

No. of orders Total redemption amount (` mn)

2010 - 11 19,836 1,604 2,674 546 22,510

2011-12 109,814 4,891 10,662 3,353 120,476

April - Sep'12 82,727 3,882 11,499 2,808 94,226 Source: NSE

Unit Holding Pattern of Mutual Funds

The unit holding pattern of mutual funds depicted in Table 3-8 shows that the individual investors accounted for 94.5 percent of the total number of investor accounts at the end of March 2012. They were followed by corporate/institution, who constituted a meager 3.6 percent of the total number of investor accounts. The individuals accounted for 48.2 percent of the net assets of the MF industry in 2011–2012, followed by corporate/institution, who accounted for 44.9 percent. The individuals saw the highest increase in net assets among the four categories, with a year-on-year improvement of 24.8 percent in 2011–2012. On the other hand, corporate and institutions saw a decline of 27.9 percent.

Table 3-8: Unit Holding Pattern of Mutual Funds

Category Percentage to total investors Percentage to total net assets

2010-11 2011-12 2010-11 2011-12

Individuals 97.0 94.5 23.4 48.2

NRIs 1.9 1.9 2.0 6.0

FIIs 0.0 0.0 1.8 0.9

Corporate/Institutions/Others 1.1 3.6 72.8 44.9

Total 100.0 100.0 100.0 100.0

Source: SEBI

Index Funds

At the end of September 2012, there were 43 index funds in the mutual fund industry. The performance of these ETFs (in terms of returns in 3 months, 6 months, and 12 months) and their details, such as their date of launch and their underlying index, are depicted in Table 3-9.

Table 3-9: Performance of Index Funds

Index Funds - Schemewise Launch Date Benchmark Index

Returns (in percent)3M 6M 12M

1 Birla Sun Life Index Fund - Dividend 18-Sep-02 S&P Nifty 7.9 7.9 14.72 Birla Sun Life Index Fund - Growth 18-Sep-02 S&P Nifty 7.9 7.9 14.73 Canara Robeco Nifty Index - Dividend 8-Oct-04 S&P Nifty 8.0 8.1 15.44 Canara Robeco Nifty Index - Growth 8-Oct-04 S&P Nifty 8.0 8.1 15.45 Franklin India Index Fund - BSE Sensex Plan - Dividend 26-Mar-04 BSE Sensex 7.8 8.5 14.16 Franklin India Index Fund - BSE Sensex Plan - Growth 26-Mar-04 BSE Sensex 7.8 8.5 14.17 Franklin India Index Fund - NSE Nifty Plan - Dividend 4-Aug-00 S&P Nifty 8.1 8.3 15.3

Contd.

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Index Funds - Schemewise Launch Date Benchmark Index

Returns (in percent)3M 6M 12M

8 Franklin India Index Fund - NSE Nifty Plan - Growth 26-Mar-04 S&P Nifty 8.1 8.3 15.39 HDFC Index Fund - Nifty Plan 17-Jul-02 S&P Nifty 8.1 8.4 15.0

10 HDFC Index Fund - Sensex Plan 17-Jul-02 BSE Sensex 7.8 8.6 14.611 HDFC Index Fund - Sensex Plus Plan 17-Jul-02 BSE Sensex 7.7 8.9 16.312 ICICI Prudential Index Fund 26-Feb-02 S&P Nifty 7.8 8.0 15.113 IDBI Nifty Index Fund - Dividend 25-Jun-10 S&P Nifty 8.0 8.1 15.214 IDBI Nifty Index Fund - Growth 25-Jun-10 S&P Nifty 8.0 8.1 15.215 IDFC Nifty Fund - Dividend 30-Apr-10 S&P Nifty 8.1 9.4 17.216 IDFC Nifty Fund - Growth 30-Apr-10 S&P Nifty 8.1 9.4 17.117 LIC Nomura MF Index Fund - Nifty Plan - Dividend 6-Dec-02 S&P Nifty 8.0 8.3 15.518 LIC Nomura MF Index Fund - Nifty Plan - Growth 6-Dec-02 S&P Nifty 8.0 8.3 15.519 LIC Nomura MF Index Fund - Sensex Advantage Plan - Div 6-Dec-02 BSE Sensex 7.7 8.0 14.520 LIC Nomura MF Index Fund - Sensex Advantage Plan - Growth 6-Dec-02 BSE Sensex 7.7 8.0 14.521 LIC Nomura MF Index Fund - Sensex Plan - Dividend 6-Dec-02 BSE Sensex 7.9 8.8 14.722 LIC Nomura MF Index Fund - Sensex Plan - Growth 6-Dec-02 BSE Sensex 7.9 8.8 14.723 Principal Index Fund - Dividend 26-Jul-99 S&P Nifty 7.2 7.3 14.724 Principal Index Fund - Growth 26-Jul-99 S&P Nifty 7.2 7.3 14.725 Reliance Index Fund - Nifty Plan - Ann Dividend 28-Sep-10 S&P Nifty 8.3 8.7 16.626 Reliance Index Fund - Nifty Plan - Bonus 28-Sep-10 S&P Nifty 8.3 8.7 16.627 Reliance Index Fund - Nifty Plan - Growth 28-Sep-10 S&P Nifty 8.3 8.7 16.628 Reliance Index Fund - Nifty Plan - Half Yly Dividend 28-Sep-10 S&P Nifty 8.3 8.7 16.629 Reliance Index Fund - Nifty Plan - Qtly Dividend 28-Sep-10 S&P Nifty 8.3 8.7 16.630 Reliance Index Fund - Sensex Plan - Ann Dividend 28-Sep-10 BSE Sensex 8.0 9.0 15.031 Reliance Index Fund - Sensex Plan - Bonus 28-Sep-10 BSE Sensex 8.0 9.0 15.032 Reliance Index Fund - Sensex Plan - Growth 28-Sep-10 BSE Sensex 8.0 9.0 15.033 Reliance Index Fund - Sensex Plan - Half Yly Dividend 28-Sep-10 BSE Sensex 8.0 9.0 15.034 Reliance Index Fund - Sensex Plan - Qtly Dividend 28-Sep-10 BSE Sensex 8.0 9.0 15.035 SBI Magnum Index Fund - Dividend 17-Jan-02 S&P Nifty 8.1 8.2 15.636 SBI Magnum Index Fund - Growth 17-Jan-02 S&P Nifty 8.1 8.2 15.637 Tata Index Fund - Nifty Plan - Option A 25-Feb-03 S&P Nifty 8.2 8.7 16.238 Tata Index Fund - Sensex Plan - Option A 25-Feb-03 BSE Sensex 7.9 8.9 15.239 Tata Index Fund - Sensex Plan - Plan A 25-Feb-03 BSE Sensex 7.7 8.5 14.340 Taurus Nifty Index Fund - Dividend 19-Jun-10 S&P Nifty 8.4 8.6 12.741 Taurus Nifty Index Fund - Growth 19-Jun-10 S&P Nifty 8.4 8.6 13.942 UTI Nifty Fund - Dividend 14-Feb-00 S&P Nifty 8.4 8.5 15.743 UTI Nifty Fund - Growth 14-Feb-00 S&P Nifty 8.4 8.5 15.7

Note:ReturnsarecalculatedasatendofSeptember2012.M:MonthSource: NSE and ICRA Online

Exchange-Traded Funds

At the end of September 2012, there were 34 exchange-traded funds in India (listed on the NSE and the BSE), of which 20 were index-based ETFs and 14 were gold-based ETFs. The performance of these ETFs (in terms of returns in 3 months, 6 months, and 12 months) and their details, such as their date of launch and their underlying index, are depicted in Table 3-10.

Contd.

www.nseindia.com


Table 3-10: Performance of Exchange Traded Funds

(in percent)

Name of ETFs Underlying Index Launched by AMC Listed at

Launch Date

3 M 6 M 12 M

Index Based / Money Market ETFs

1 GS Bank BeES CNX Bank Goldman Sachs Asset Management (India) Private Limited

NSE 27-May-04 11.2 14.1 21.5

2 GS Hang Seng BeES Hang Seng Goldman Sachs Asset Management (India) Private Limited

NSE 18-Mar-10 2.0 7.8 31.5

3 ICICI SENSEX Prudential ETF Sensex ICICI Prudential Mutual Fund

BSE 13-Jan-03 7.7 8.9 17.1

4 IIFL Nifty Nifty 50 India Infoline Asset Management Company Limited

NSE 18-Oct-11 8.4 8.9 --

5 GS Junior BeES CNX Nifty Junior Goldman Sachs Asset Management (India) Private Limited

NSE 21-Feb-03 9.8 6.2 13.0

6 Kotak Nifty Nifty 50 Kotak Mahindra Asset Management Company Limited

NSE 2-Feb-10 8.4 8.8 16.6

7 Kotak PSU Bank CNX PSU Bank Kotak Mahindra Asset Management Company Limited

NSE 16-Nov-07 3.3 1.5 7.0

8 Kotak Sensex Sensex Kotak Mahindra Asset Management Company Limited

BSE 16-Jun-08 8.0 8.9 15.3

9 GS Infra BeES CNX Infrastructure Goldman Sachs Asset Management (India) Private Limited

NSE 7-Oct-11 5.2 1.0 -2.3

10 Birla Sun Life Nifty Nifty 50 Birla Sun Life Asset Management Company Limited

NSE 4-Jul-11 8.3 8.7 16.4

11 GS Liquid BeES Crisil Liquid Fund Goldman Sachs Asset Management (India) Private Limited

NSE 27-May-04 1.4 2.9 6.1

12 MOSt Shares M50 Nifty 50 Motilal Oswal Asset Management Company Limited

NSE 30-Jun-10 8.4 7.8 17.7

13 MOSt Shares M100 CNX 100 Motilal Oswal Asset Management Company Limited

NSE Jan-11 7.3 2.6 11.6

14 MOSt Shares NASDAQ 100 NASDAQ Motilal Oswal Asset Management Company Limited

NSE 31-Mar-11 3.6 5.2 38.6

15 GS Nifty BeES Nifty 50 Goldman Sachs Asset Management (India) Private Limited

NSE 28-Dec-01 8.4 8.9 14.7

16 GS PSU Bank BeES CNX PSU Bank Goldman Sachs Asset Management (India) Private Limited

NSE 1-Nov-07 4.3 2.4 8.0

Contd.

www.nseindia.com


Name of ETFs Underlying Index Launched by AMC Listed at

Launch Date

3 M 6 M 12 M

17 Quantum Index Fund - Growth

Nifty 50 Quantum Asset Management Co. Private Ltd

NSE 18-Jul-08 8.3 8.7 16.6

18 R* Shares Banking CNX Bank Reliance Capital Asset Management Limited

NSE 27-Jun-08 10.7 13.6 22.3

19 GS S&P Shariah BeES Nifty 50 Goldman Sachs Asset Management (India) Private Limited

NSE 18-Mar-09 6.8 4.5 10.9

20 Religare Nifty Nifty 50 Religare Mutual Fund NSE 23-May-11 8.3 8.6 16.1

GOLD ETFs

21 Axis Gold – Axis Asset Management Company Limited

NSE 30-Oct-10 5.9 10.0 19.8

22 Birla Sun Life Gold – Birla Sun Life Asset Management Company Limited

NSE 25-Apr-11 6.1 10.3 20.0

23 Canara Robeco Gold – Canara Robeco Asset Management Company Limited

NSE 22-Mar-12 5.8 9.9 --

24 GS Gold BeES – Goldman Sachs Asset Management (India) Private Limited

NSE 19-Mar-07 5.8 10.1 20.0

25 HDFC Gold – HDFC Asset Management Company Limited

NSE 30-Jun-09 5.8 10.1 20.0

26 ICICI Prudential Gold – ICICI Prudential Mutual Fund

BSE 16-Jul-10 6.0 10.1 19.9

27 IDBI Gold – IDBI Asset Management Limited

NSE 9-Nov-11 5.9 10.1 --

28 Kotak Gold – Kotak Mutual Fund NSE 8-Aug-07 5.8 10.1 20.7

29 MOSt Shares Gold – Motilal Oswal Asset Management Company Limited

NSE 22-Mar-12 5.7 9.7 --

30 Quantum Gold Fund - Growth – Quantum Asset Manage-ment Co. Private Ltd

NSE 28-Feb-08 6.0 10.1 20.1

31 R* Shares Gold - Dividend – Reliance Capital Asset Management Limited

NSE 27-Jun-08 6.0 10.2 20.1

32 Religare Gold – Reliance Capital Asset Management Limited

NSE 29-Jan-10 6.0 10.2 20.1

33 SBI Gold – SBI Mutual Fund NSE 28-May-09 5.9 10.2 20.2

34 UTI Gold – UTI Asset Management Co. Ltd.

NSE 1-Mar-07 5.9 10.2 20.1

Notes:UTIMasterIndexFundandS&PCNXNiftyUTINotionalDepositoryReceiptsScheme(SUNDER)mergedwithUTINiftyFundon15thMarch2012.Source: BSE, NSE and ICRA Online

Contd.

www.nseindia.com


Table 3-11: Turnover of ETFs Listed at NSE and BSE

Sr. No.

Name of ETF ETF Symbol on NSE 2011-12 April-September 2012

Sum of Total Traded Value

(` mn)

Sum of Total

Traded Value

(US $ mn)

Sum of Total

Traded Value (` mn)

Sum of Total

Traded Value

(US $ mn)

1

IND

EX B

ASE

D /

MO

NEY

MA

RKET

ETF

s

GS Bank BeES BANK BEES 793 15 318 6

2 Birla Sun Life Nifty BSLNIFTY 50 1 2 0.04

3 GS Hang Seng BeES HNGSNGBEES 238 5 172 3

4 GS Infrastructure INFRABEES 30 1 27 1

5 GS Junior BeES JUNIOR BEES 915 18 290 5

6 IIFL Nifty IIFLNIFTY 830 16 519 10

7 Kotak Nifty KOTAK NIFTY 649 13 629 12

8 Kotak PSU Bank KOTAK PSU BK 637 12 25 0.5

9 Kotak Sensex KOTAK SENSEX 85 2 318 6

10 GS Liquid BeES LIQUIDBEES 38,500 753 19,838 363

11 MOSt Shares M100 M100 393 8 89 2

12 MOSt Shares M50 M50 528 10 125 2

13 MOSt Shares NASDAQ 100 N100 210 4 161 3

14 GS Nifty BeES NIFTY BEES 14,457 283 4,718 86

15 GS PSU Bank BeES PSUBNK BEES 154 3 52 1

16 Quantum Nifty QNIFTY 11 0.2 7 0.1

17 Reliance Banking RELBANK 31 1 13 0.2

18 Religare Nifty RELGRNIFTY 81 2 6 0.1

19 GS S & P Shariah BeES SHARIA BEES 7 0.1 2 0.0

20 ICICI Sensex Prudential Exchange Traded Fund (SPICE)

SPICE-ETF 7 0.1 2 0.0

21 S&P CNX NIFTY UTI Notional Depository Receipts Scheme (SUNDER)

UTISUNDERETF 32 1 - -

Total Turnover of Index Funds 58,639 1,146 27,312 500

Contd.

www.nseindia.com


Sr. No.

Name of ETF ETF Symbol on NSE 2011-12 April-September 2012

Sum of Total Traded Value

(` mn)

Sum of Total

Traded Value

(US $ mn)

Sum of Total

Traded Value (` mn)

Sum of Total

Traded Value

(US $ mn)

22

GO

LD B

ASE

D E

TFs

Axis Gold AXISGOLD 861 17 215 4

23 Birla Sun Life Gold BSLGOLDETF 1,129 22 76 1

24 GS - Gold BeES GOLDBEES 83,404 1,630 27,472 503

25 Canara Robeco Gold CRMFGETF 3 0 78 1

26 HDFC Gold HDFCMFGETF 3,197 62 1,116 20

27 ICICI Prudential Gold IPGETF 537 10 161 3

28 IDBI Gold IDBIGOLD 150 3 378 7

29 Kotak Gold KOTAKGOLDETF 15,844 310 3,601 66

30 MOSt Gold MGOLD 13 0.2 466 9

31 Quantum Gold QGOLDHALF 454 9 196 4

32 Reliance Gold RELGOLD 10,382 203 2,848 52

33 Religare Gold RELIGAREGO 1,290 25 335 6

34 SBI Gold SBIGETS 6,367 124 2,306 42

35 UTI Gold Share GOLDSHARE 7,055 138 1,561 29

Total Turnover of Gold Based ETFs 130,685 2,555 40,810 747

Total Turnover of all ETFs 189,324 3,701 68,122 1,248

Percentage of Index Funds Turnover to total ETF Turnover

31.0 40.1

Percentage of Gold based ETF Turnover to total ETF turnover

69.0 59.9

Notes:UTIMasterIndexFundandS&PCNXNIFTYUTINotionalDepositoryReceiptsScheme(SUNDER)mergedwithUTINiftyFundon15thMarch2012. Source: BSE, ICRA Online and NSE

The total traded value of the ETFs listed on the NSE and the BSE during the fiscal year 2011–2012 was ̀ 189,324 million (US $ 3,701 million). The details of the ETF turnover at the NSE and the BSE is given in Table 3-11.

Contd.

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