Global Surge: New Passive Funds Tracking Nifty Indices Launched

Eleven new passive funds, including Exchange Traded Funds and Index Funds that track Nifty Indices, were launched in Japan and Korea in FY 2024-25. With 33 passive funds outside India totaling USD 4.3 billion in assets, there's a rising global demand for India-focused investment products.

Eleven new passive investment funds targeting Nifty Indices have been unveiled in Japan and Korea during the fiscal year 2024-25, according to the National Stock Exchange of India (NSE). Among these, nine are designed to follow the Nifty 50 index.

The remaining funds are divided between one tracking the Nifty India Corporate Group Index and another geared towards the Nifty Midcap 50 Index. Currently, 33 passive funds are monitoring Nifty Indices outside India, with a combined asset value of USD 4.3 billion.

In India, passive funds tracking various Nifty Indices hold an AUM of Rs 9.8 lakh crore, with 73 percent, approximately Rs 7.1 lakh crore, dedicated to Nifty Indices. Aniruddha Chatterjee, MD of NSE Indices, highlighted the growing demand for India-focused products, projecting further launches aimed at global markets.

(With inputs from agencies.)