Nippon Nifty IT ETF

About Nippon India ETF NIFTY IT (NSE: ITBEES)

• Nippon India ETF NIFTY IT (NSE: ITBEES) is an open-ended fund scheme launched by Nippon India Mutual Fund. The ETF follows a passive investment method.
• The exchange-traded fund (ETF) tracks the performance of the NIFTY IT index.
• It invests in stocks that constitute the NIFTY IT Index in the same proportion as in the Index.
• The constituents of the NIFTY IT index are top Indian IT players – software and technology services providers.
• The NIFTY IT Index, comprising 10 companies, gives insights into the performance of the Indian IT industry.
• The assets under management (AUM) of the ETF as of July 12, 2024, stood at ₹2,413 crore. The expense ratio of the ETF is 0.22%.
• The net asset value (NAV) per unit as of July 12, 2024, stood at ₹41.68.
• Nippon India Mutual Fund launched the Nippon India ETF NIFTY IT in June 2020. The fund scheme is managed by Himanshu Mange.

Investment objective & Benchmark

• The Nippon India ETF NIFTY IT aims to provide investment returns corresponding to the returns of stocks as represented by the NIFTY IT Index before expenses, subject to tracking errors.
• The ETF provides an opportunity to investors to be part of the growth potential of Indian IT companies. The NIFTY IT Index comprises of 10 companies.
• Retail investors with a Demat account can invest in the ETF through brokers or online trading platforms provided by the broker firms.
• Investors can put money directly in the Mutual fund by creating unit size of 1,00,000 units and in multiples thereof. The execution value for large investors must be greater than ₹25 crore.

Asset Allocation & Portfolio Composition

The Nippon India ETF NIFTY IT scheme invests 99.44% of resources in equities in the IT sector and 0.56% in others. Giant caps account for 68.1% of the total investment, large caps 15.81%, midcaps 4.24% and smallcap stocks 4.24%.

Infosys accounts for the highest exposure at 26.92% as of June 2024. The ETF comprise following stocks:

• Infosys Technology: 26.92%
• TCS: 24.73%
• HCL Technologies: 9.66%
• Tech Mahindra: 9.6%
• Wipro: 8.77%
• LTIMindtree: 5.96%
• Persistent Systems: 5.36%
• Coforge: 4.35%
• Mphasis: 2.46%
• L&T Technology Services: 1.63%