On Wednesday, NextFins announced the launch of the Nifty India Financials ETF (INDF), which is now available for trading. INDF will trade in US Dollars during US market hours.
The Nifty India Financials ETF seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Nifty Financial Services 25/50 Index.
This index comprises Indian banks, financial institutions, housing finance companies, insurance companies, and other financial services companies in India.
“INDF allows investors to access the financial companies that directly participate in the megatrends driving Indian economic growth: a young population, a growing workforce, urbanization, increasing access to the digital economy through smartphones, and rising personal credit penetration,” NextFins said in a statement issued earlier on Wednesday.
Accepting The Challenge
As stated by Amit Anand, co-founder of Adi Capital Management and Managing Member of the INDF team, “This fund is the first and only fund that provides ETF investors direct access to India’s financial companies. Indian financials benefit from the megatrends driving India’s growth, but US investors had no way of accessing those companies through an ETF before INDF.”
When considering challenges, Anand continues, “The main challenge related to the launch was identifying an index that meets RIC diversification rules. To that end, we worked closely with Nifty, the Index provider to INDF, in coming up with a variant to their Nifty Financial Services Index that satisfies the necessary rules.”
About the Nifty Financial Services 25/50 Index: The Nifty Financial Services 25/50 Index is managed by NSE Indices Limited and tracks a well-distributed portfolio of top 20 stocks within the Financial Services sector in India.
About NextFins: NextFins was founded in 2020 with the goal of democratizing access to smart investment ideas. INDF is the first ETF in NextFins’ roadmap.
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