Mirae Asset Global Investments announced on the 14th that it will newly list the ‘TIGER India Nifty 50 ETF’ on the Korea Exchange. This is the second TIGER ETF investing in the Indian market, following the ‘TIGER India Nifty 50 Leverage ETF (Synthetic)’.
India is considered one of the fastest-growing countries in the world, based on its massive consumer market of 1.4 billion people. The country’s growth potential is further enhanced by its young and abundant human resources, the government’s active efforts for economic revival, and a favorable environment. In particular, with the recent global supply chain restructuring centered on the United States, India is expected to emerge as a global production hub in the future.
The ‘TIGER India Nifty 50 ETF’ is a product that invests in leading companies driving the Indian economy within the Indian market, which has unlimited growth potential. The ETF’s underlying index is the ‘Nifty 50 Index,’ a representative index of the Indian market. This index, which includes the top 50 stocks listed on the National Stock Exchange (NSE) based on free-float market capitalization, has recorded significantly higher excess returns compared to other major global stock markets in terms of short-, medium-, and long-term returns. Its average annual growth rate over the past 30 years is approximately 14% (source: Bloomberg), and it showed favorable returns even amid last year’s challenging international stock markets due to inflation and interest rate hikes.
The major sectors included are financials (36.8%), IT (14.7%), energy (12.2%), consumer staples (9.0%), consumer discretionary (7.1%), materials (6.9%), and industrials (4.9%), among others. Unlike other emerging markets, IT and telecommunications companies hold a high proportion. Representative companies include ‘RELIANCE INDUSTRIES,’ known as India’s SK in the petrochemical sector, ‘INFOSYS,’ the first Indian company listed on the US Nasdaq, and ‘TATA CONSULTANCY,’ a leading Indian IT and consulting firm. Recently, global big tech companies such as Google and Intel have actively entered India, and Apple has announced plans for local production of the iPhone 14, further increasing the growth potential of Indian IT and telecommunications companies.
To commemorate the launch of the ‘TIGER India Nifty 50 ETF,’ Mirae Asset Global Investments is also conducting an event for trading customers. Customers who trade more than 300 million KRW daily of this ETF through Korea Investment & Securities and Kiwoom Securities will be entered into a draw to receive cultural gift certificates. Kiwoom Securities is also running a simultaneous event for customers trading the ‘TIGER India Nifty 50 Leverage (Synthetic) ETF,’ which tracks twice the daily return of the Nifty 50 Index. Detailed event information can be found on the securities firms’ websites.
Song Min-gyu, Senior Manager of ETF Operations at Mirae Asset Global Investments, said, “Companies included in the India Nifty 50 Index focused on debt repayment during COVID-19 with low corporate interest rates and government subsidies, and are expanding operating profits relative to GDP based on improved financial soundness.” He added, “Through the ‘TIGER India Nifty 50 ETF,’ global investors are expected to be able to invest in the growth potential of the Indian market, which is considered highly attractive.”
Meanwhile, Mirae Asset Global Investments, which established a local subsidiary in Mumbai, India in 2006, has been recognized for its expertise in the Indian market, currently ranking as the 9th largest asset manager in India. Mirae Asset’s India subsidiary is the only independent foreign capital asset manager in India, with assets under custody reaching 21 trillion KRW and 5.5 million accounts as of the end of 2022. In 2019, it received approval from the Securities and Exchange Board of India to transition to an asset management holding company system, enabling it to operate not only fund management and advisory but also to actively engage in alternative investments such as venture capital (VC) and logistics center investments.
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