Skip to main content

MSCI Index ETF


For investors tired of buying Sensex and Nifty exchange traded funds (ETFs), there's might be a new option


For investors tired of buying Sensex and Nifty exchange traded funds (ETFs), there's a new option on the cards. HDFC AMC has filed a draft document for an MSCI India Index based ETF with market regulator Sebi. If the product gets the green signal, this could be an interesting new addition to 20-odd ETFs already in the market.

Since ETFs are passive investment vehicles, they are only as good as the underlying index they track. Most of the ETFs currently available in the market track the Sensex and the Nifty. There are a few which mimic thematic or strategy indices like Nifty Dividend Opportunities 50, Nifty Next 50, Nifty Free Float Midcap 100, Nifty Bank, BSE 100, CNX 100, and overseas benchmarks like Nasdaq 100.


So, how different is the MSCI India Domestic Index? The 84-constituent MSCI India Domestic Index is designed to measure the performance of the large and mid cap segments of the Indian market. The index is based on the MSCI Global Investable Market Indexes and uses the Domestic Inclusion Factor (DIF) as the free-float adjustment factor for the market capitalization of each security. Simply put, if you invest in an ETF based on the MSCI India Domestic Index, you can get a wider representation of the Indian market.


It is estimated that about 70-80% of the money flowing into India is from investors who use MSCI's benchmark indices. Because MSCI is the de facto global standard in the index business, an ETF based on MSCI's India index is likely to find good traction. An India-based ETF could also help foreign investors sidestep the cap on FII ownership in individual stocks.


The MSCI India Domestic Index's top 10 constituents are HDFC Bank (Financials), HDFC (Financials), Infosys (Info Tech), ITC (Consumer Staples), RIL (Energy), ICICI Bank (Financials), TCS (Info Tech), L&T (Industrials), Tata Motors (Consumer Discretionary) and Axis Bank (Financials). These 10 stocks make for nearly 45% of its weight, as per its latest update.


From a sectoral point of view, the MSCI India Domestic index is heavily inclined towards Financials (31.36%), Infotech (13.21%) and Consumer Discretionary (11.53%). It also has exposure to Consumer Staples, Energy, Materials and Healthcare between 7-10%. Industrials, Utilities and Telecommunication Services each have less than 5% share.


An index is as good as its performance. The MSCI India Domestic Index has performed better than the Sensex in recent years. MSCI India Domestic Index, in INR terms, grew by 4.54% in 2016 when Sensex inched up by just 1.95%. In 2015, the index dipped by 1.17% compared to a steeper 5.03% drop in Sensex. A year before, i.e. 2014, when the Sensex rose by 29.89%, MSCI India Domestic Index jumped by 35%. However, the index under-performed Sensex in 2011, 2012 and 2013.


Year Sensex MSCI India Domestic Index
2009 81.03 88.82
2010 17.43 18.04
2011 -24.64 -25.17
2012 25.7 33.51
2013 8.98 7.75
2014 29.89 35
2015 -5.03 -1.17
2016 1.95 4.54
Source: BSE, MSCI





Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017 - 2018

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGet Rich on 94 8300 8300


Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


 

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now