India's largest Mutual Fund, Reliance Mutual Fund is launching Morgan Stanley Capital India (MSCI) index ETF, following the launch of Hang Sang ETF by benchmark couple of weeks before. Reliance MSCI India ETF will be the first of its breed to track the performance of the MSCI India index. Interestingly MSCI India has outperformed Nifty since March lows,the MSCI India index has given returns of 95% while Nifty has gone up only 79% over the same period.
The MSCI India Index consists of 60 Indian companies, 10 more than the Nifty with Reliance Industries having the largest weightage of 13% followed by Infosys with a weightage of over 10%. The MSCI India Index has stocks other than Nifty which include AV Birla Nuvo, Glenmark Pharma, United Phos, United spirits.This is yet another interesting product , which would attract investors looking for Diversified Equity Fund.
Very nice fund launch.
Good news, Nifty and Niftybees has at last good competitors. The 10 additions over and above Nifty is to balance out the presence of 10 stocks within the Nifty. (Nifty actually has around 38 performing stocks rest 12 are just there to make it 50).