NIP ETF Consumption

About Nippon India ETF Nifty India Consumption

• The Nippon India ETF Nifty India Consumption is an open-ended exchange-traded fund offered by the Nippon India Mutual Fund House.
• The fund was launched on April 3, 2014.
• This ETF invests in top-performing stocks from consumer non-durables, healthcare, auto, telecom services, pharmaceuticals, hotels, media & entertainment sectors.
• The ETF's assets under management (AUM) stood at 130.35 crore as of July 31, 2024.
• Himanshu Mange has been managing the Nippon India ETF Nifty India Consumption since December 23, 2023.
• The ETF units can be bought and sold at the prevailing price during the usual market hours.
• One can invest in the scheme directly by buying the ETF units through a demat account with a registered broker.

Investment Objective & Benchmark

• The Nippon India ETF Nifty India Consumption’s objective is long-term capital appreciation by investing in equity and equity-related securities, and portfolios replicating the composition of the underlying index.
• It is benchmarked against the Nifty India Consumption Index, designed to reflect the behaviour and performance of a diversified portfolio of companies within the domestic consumption sector.
• The index is composed of a maximum of 30 stocks, with individual constituent weights capped at 10%.
• The Nippon India ETF Nifty India Consumption falls in the very high risk category of funds, making the scheme suitable for long-term wealth creation goals.
• The scheme invests in companies from different sectors thus limiting the exposure to sectoral risk.
• The Nippon India ETF Nifty India Consumption invests the majority of the funds in companies that are market leaders in their segment and offer greater stability compared to small players.

Asset Allocation & Portfolio Composition

• Under normal circumstances, the anticipated asset allocation is as follows — securities constituting the Nifty India Consumption Index will comprise 95% to 100% of the total assets, with a medium to high-risk profile.
• Money market instruments, including Tri-Party Repo on government securities and T-bills with maturities not exceeding 91 days, and liquid schemes of mutual funds, will constitute 0% to 5% of the total assets, with a low to medium risk profile.
• Nippon India ETF Nifty India Consumption has diversified its funds in companies of different market capitalisation – 38.81% in giant-cap, 22% in large-cap, 28.73% in mid-cap and 10.3% in small-cap companies.
• The top 10 company holdings make up 68.70% of the ETF's asset allocation, as of July 31, 2024.

Top 5 sectors where the ETF has invested in:

• FMCG: 38.48%
• Automobile: 21.7%
• Consumer Services: 14.04%
• Consumer Durables: 10.18%
• Telecommunication: 9.87%

Here are the top 10 company holdings part of this ETF:

• ITC Ltd. - 10.95%
• Bharti Airtel Ltd. - 9.87%
• Mahindra & Mahindra Ltd. - 8.71%
• Hindustan Unilever Ltd. - 7.48%
• Maruti Suzuki India Ltd. - 5.35%
• Titan Company Ltd. - 4.46%
• Zomato Ltd. - 3.70%
• Asian Paints Ltd. - 4.38%
• Trent Ltd. - 3.97%
• Bajaj Auto Ltd. - 3.33%

• The ETF has delivered 41.14% in the last one year compared to the benchmark of 41.73% as of July 31, 2024.
• Since its inception, Nippon India ETF Nifty India Consumption has delivered a yield of 16.83%.