Nippon Nifty Infrastructure ETF

About Nippon India ETF Nifty InfrastructureBeES

• The Nippon India ETF Nifty Infrastructure BeES is an open-ended index scheme managed by Nippon India Mutual Fund.
• The ETF was launched on September 29, 2010.
• The Nippon India ETF follows an aggressive investment approach.
• The scheme’s assets under management (AUM) stood at ₹174.07 crore as of June 30, 2024.
• Himanshu Mange has been the fund manager of Nippon India ETF Nifty InfrastructureBeES since December 2023.
• The ETF units are listed on the NSE and one can invest by buying its units through a demat account.
• The ETF units can be traded at the prevailing market price during each session.

Investment Objective & Benchmark

• Nippon India ETF Nifty Infrastructure BeES aims to offer returns that mirror the performance of equity stocks in the underlying index.
• It is benchmarked against Nifty Infrastructure TRI which comprises companies involved in infrastructure development and operations, offering investors exposure to the infrastructure sector.
• This index includes stocks of companies from various segments of the infrastructure sector, such as construction, engineering, power, transportation and real estate.
• The risk profile of Nippon India ETF Nifty Infrastructure BeES is very high.
• The ETF offers a cost-effective way to gain exposure in the infrastructure sector.
• Nippon India ETF Nifty InfrastructureBeES is Ideal for investors who believe in the growth potential of the infrastructure sector and want to capitalise on opportunities within this sector.

Asset Allocation & Portfolio Composition

• The fund allocation comprises around 99.68% in equity and 0.32% in cash & cash equivalents.
• The ETF invests funds across market capitalisations – 34.16% in giant, 15.79% in large-cap, 26.98% in mid-cap and 23.07% in small-cap companies.
• The top 10 company holdings constitute 66.84% of the asset allocation.

Top 10 holdings of stock in ETF:

• Reliance Industries Ltd: 20.89%
• Larsen & Toubro Ltd: 12.79%
• Bharti Airtel Ltd: 11.91%
• NTPC Ltd: 5.54%
• Power Grid Corporation of India Ltd: 4.65%
• Ultratech Cement Ltd: 4.16%
• Adani Ports and Special Economic Zone Ltd: 3.35%
• Oil & Natural Gas Corporation Ltd: 3.3%
• Grasim Industries Ltd: 3.04%
• Tata Power Co Ltd: 2.3%

Sector-wise allocation:

• Oil, Gas & Consumable Fuels: 31.46%
• Construction: 12.79%
• Power: 12.50%
• Telecommunication: 11.91%
• Construction Materials: 9.56%
• Services: 6.39%
• Capital Goods: 4.85%
• Automobiles and Auto Components: 2.92%
• Realty: 2.76%
• Consumer Services: 2.6%

Since its inception, the ETF has given an annualised return of 6.98%

Nippon India ETF Nifty Infrastructure BeES has given a return of 59.07% in the last one year compared to the benchmark index’s yield of 59.40%.