Kiwoom Asset Management, Historic Rally in Indian Stock Market... 'KOSEF India Nifty50' AUM Surpasses 200 Billion Won

Kiwoom Asset Management announced on the 14th that the assets under management (AUM) of the ‘KOSEF India Nifty50 (Synthetic)’ exchange-traded fund (ETF) have surpassed 200 billion KRW.

According to the Korea Exchange, the net asset value of ‘KOSEF India Nifty50 (Synthetic)’ reached 202.8 billion KRW as of the 8th. It increased by 131.1 billion KRW throughout 2023 and has continued to grow steadily this year. This is due to the Indian stock market’s sustained upward trend since last year and active capital inflows from investors.

KOSEF India Nifty50 (Synthetic) has recently delivered outstanding performance. As of the 8th, it rose 1.88% over one month, 11.58% over six months, and 25.99% over one year. Among ETFs that track the India Nifty50 index with a 1x long exposure, it recorded the highest returns. Since April 21, 2023, when three India Nifty50 ETFs began trading simultaneously in the domestic market, KOSEF India Nifty50 (Synthetic) has posted a 22.0% increase over approximately 10 months through the 8th, outperforming the other two products by 0.1 and 0.7 percentage points, respectively.

KOSEF India Nifty50 (Synthetic) was the first India ETF launched domestically in June 2014. It tracks the ‘Nifty50 index,’ which consists of 50 major stocks listed on the National Stock Exchange of India (NSE). This index, representing India’s leading stock market, has significant weightings in major Indian financial companies such as HDFC Bank and ICICI Bank, energy giant Reliance Industries, IT firm Infosys, and construction and engineering company Larsen & Toubro.

India is recognized as one of the emerging countries with the highest growth potential. According to the World Economic Outlook released by the International Monetary Fund (IMF) in January, India’s economic growth forecast for 2024 is 6.5%, surpassing the global average (3.1%), the emerging and developing countries average (4.1%), and China (4.6%). India’s growth is supported by its status as the world’s most populous country, productivity based on inexpensive labor, and advantages amid the competitive dynamics between the US and China.

India is emerging as the world’s manufacturing hub replacing China in the global supply chain restructuring led by the US. Global investors are focusing on India as an alternative investment destination to China, which is under negative influences such as real estate downturns, sluggish domestic demand, and US-China tensions, resulting in a surge of investment funds into India’s emerging market.

Jung Sung-in, Head of ETF Marketing Division at Kiwoom Asset Management, said, “India is a key beneficiary of the US-China conflict, and its growth potential is expected to be further highlighted around the US presidential election scheduled for November this year. If you want to find opportunities in promising emerging markets, it is necessary to maintain continuous interest in India.”