SBI Nifty ETF is the largest ETF as EPFO starts investing

MUMBAI: As per data released by AMFI for September 2015, ETFs (excluding gold) have received an inflow of Rs 1927 crore. Earlier in August 2015, these ETFs had received an inflow of Rs 469 crore.

As per industry sources, this inflow is on account of investments by the EPFO into ETFs of SBI Mutual Fund. As per a notification earlier this year, the EPFO can invest 5-15 per cent of its incremental corpus in equities. EPFO's central board has decided to start with investing 5% of the incremental flows in this financial year. To start with, it will invest 75 per cent in SBI Nifty ETF and 25 per cent in SBI Sensex ETF. With incremental flows of Rs 1 lakh crore, the EPFO is likely to invest Rs 5000 crore this financial year.

"SBI Nifty ETF becomes largest Nifty ETF in 3 months with an AUM of 1200 crore," says Manoj Nagpal, MD and CEO, Outlook Asia Capital. This puts it ahead of Goldman Sachs Nifty ETS Fund, which has an AUM of Rs 830 crore as of August 2015.