Invesco India Nifty ETF

Invesco India Nifty 50 ETF

• Invesco India Nifty 50 ETF is an open-ended scheme offered by Invesco India Mutual Fund House.
• The ETF is traded under the symbol IVZINNIFTY on the NSE.
• Invesco India Nifty 50 ETF was launched on June 13, 2011.
• Invesco India Nifty 50 ETF's assets under management (AUM) stood at ₹91.42 crore as of July 31, 2024.
• The scheme has been managed by Kuber Mannadi since its inception.
• The ETF is traded on the NSE and BSE like a stock, providing investors with liquidity and flexibility.
• It can be purchased and traded during market hours at current market prices using a demat account.

Investment Objective & Benchmark

• Invesco India Nifty 50 ETF looks to generate returns mirroring the yield generated by securities as represented by the underlying index, subject to minor tracking errors.
• It is benchmarked against the Nifty 50 Index, which includes the top 50 companies listed on the National Stock Exchange.
• The ETF invests in companies across key sectors of the Indian economy to offer diversification to the fund.
• This ETF limits investors’ exposure to sectoral risks.
• Invesco India Nifty 50 ETF invests in large-cap companies, considered a more stable investment option than small-cap companies, especially during market volatility.
• The riskometer level of the Invesco India Nifty 50 ETF is rated as very high, indicating that investments in this fund carry a significant level of risk.
• The ETF is suitable for investors who can take high-risk tolerance and absorb potential losses.

Asset Allocation and Portfolio Composition

• Invesco India Nifty 50 ETF is mandated to invest at least 80% of its assets in large-cap stocks at all times. Being passively managed, it replicates the portfolio of its chosen benchmark index.
• The fund allocation of the Invesco India Nifty 50 ETF is as follows: 99.58% in equity, meaning the vast majority of the fund's assets are invested in stocks, and 0.42% in cash and cash equivalents, which are held in liquid forms such as cash or short-term money market instruments to provide liquidity and manage fund expenses.
• The company predominantly invests in large and giant cap companies, allocating them over 90% of the funds.

The top 5 sector allocation for the Invesco India Nifty 50 ETF are:

• Banks - 28.03%
• IT - Software - 13.73%
• Petroleum Products - 9.83%
• Automobiles - 8.21%
• Diversified FMCG - 6.33%

The top company holdings make up around 56.89% of the ETF’s asset allocation. The top 10 holdings in companies of ETF include:

• HDFC Bank Ltd. - 11.01%
• Reliance Industries Ltd. - 9.21%
• ICICI Bank Ltd. - 7.73%
• Infosys Ltd. - 6.11%
• ITC Ltd. - 4.14%
• Larsen & Toubro Ltd. - 4.03%
• Tata Consultancy Services Ltd. - 4.02%
• Bharti Airtel Ltd. - 3.61%
• State Bank of India - 3.03%
• Axis Bank Ltd. - 3.00%

Invesco India Nifty 50 ETF has delivered a return of 27.49% in the last one year against the benchmark returns of 27.76%, as of July 31, 2024. The scheme has given a return of 13.28% since its inception.