CPSE ETF yields average return of 16.7% since inception

The current exponential growth in Indian ETF market can be attributed to growing acceptance of passive investing by the market participants, which is evident from overwhelming response to the disinvestment initiatives of the Government of India (GoI). The Indian ETF market corpus stood at Rs 778.97 billion as of Dec’17, clocking a CAGR of 40 per cent through 2012-17. Despite this impressive CAGR, Indian ETF market continues to remain at nascent stage vis-à-vis the developed markets. Notably, the Assets under Management (AUM) of global ETF market stood at ~US $ 4.8 trillion as on Dec’17. Looking ahead, the Indian ETF market is expected to grow on the back of continued thrust of the GoI and acceptance of ETFs as an investment vehicle.

Fund Performance
CPSE ETF fund yielded 16.7 per cent CAGR return since inception (March 28, 2014) till January 10, 2018. Over the past six months, it generated absolute return of 16.6 per cent against the Nifty 50 returns of 9.4 per cent. The fund has outperformed significantly compared to other investment avenues i.e. MCX Gold Spot and FD.


Since inception, absolute return of CPSE ETF Further Fund Offer (FFO) units as of Jan 10, 2018 was 24.2 per cent (FFO units of CPSE were allotted on Jan 28, 2017).

Since inception, absolute return of CPSE ETF FFO 2 units as on Jan 10, 2018 was 16.7% per cent (FFO units of CPSE were allotted on Mar 25, 2017).