Quantum Nifty 50 ETF

About Quantum NIFTY 50 ETF

• Quantum NIFTY 50 ETF is an open-ended scheme launched by Quantum Mutual Fund house.
• The passive investing fund scheme replicates the benchmark NIFTY 50 Index of the NSE.
• The exchange-traded fund tracks the performance of NIFTY 50, subject to tracking errors.
• The NIFTY 50 index consists of the 50 largest and most traded blue-chips listed on the NSE, which reflect the overall performance of Indian equity markets. NIFTY 50 is the widely tracked index.
• The ETF replicates the NIFTY 50 in the same weightage as in the NIFTY 50 Index to minimize the performance differences between the scheme and the NIFTY 50 Index in capital terms.
• The initial name of the scheme, Quantum NIFTY ETF, has been changed to Quantum NIFTY 50 ETF from February 1, 2022.
• The ETF was launched in June 2008.
• Hitendra Parekh has been managing this fund since July 10, 2008.
• The ETF has given 12.88% return since inception and 16.46% in the past 5 years, as on June 30, 2024. The ETF has gained 16.45% in the past three years and 26.63% in the last one year.
• The ETF’s total assets under management (AUM) stood at ₹ 57.64 crore as on June 30, 2024.
• The ETF is listed on the NSE. Any investor with a Demat account can easily subscribe to one unit and multiples of through a broker or trading platform provided by the broker firm.

Investment Objective & Benchmark

• According to the Quantum Mutual Fund, the objective of the ETF is to invest in shares of companies consisting of NIFTY 50 Index and looks to achieve returns equivalent to NIFTY 50 by passive investment.
• The ETF mirrors the index in the same weightage as in the NIFTY 50 Index.
• The scheme could be appropriate for investors who seek long-term capital appreciation. Also, the ETF provides an opportunity to investors who want to invest in equity and equity related securities of NIFTY 50 constituents.

Asset Allocation & Portfolio Composition

• The ETF allocates 99.62% of the resources to equities. Sector wise, banks carried the highest fund allocation in the ETF portfolio followed by petroleum products, IT and diversified FMCG stocks.

Top 5 sector wise allocations (as on June 30, 2024)

• Banks: 26.28%
• Petroleum Products: 9.96%
• IT – Software: 9.02%
• Construction: 3.9%
• Diversified FMCG: 3.64%

Top 5 holdings (as on June 30, 2024)

• HDFC Bank Ltd: 11.91%
• Reliance Industries Ltd: 9.96%
• ICICI Bank Ltd: 7.93%
• Infosys Ltd: 5.3%
• Larsen & Toubro Ltd: 3.90%