India's first exchange-traded fund (ETF) devoted to the capital markets and insurance industries, the Edelweiss BSE Capital Markets & Insurance ETF, was introduced by Edelweiss Mutual Fund.

The open-ended plan replicates and tracks the BSE Capital Markets & Insurance Total Return Index, which includes top corporations from both industries. By purchasing this ETF, investors gain access to a wide portfolio of top-performing capital markets and insurance companies.

Important Points to Remember:

The first exchange-traded fund (ETF) in India that takes advantage of the massive trend of money being turned into capital markets and insurance

The theme makes use of India's growing youth, digital, and prosperity trifecta, which is expected to propel the uptake of mutual funds, stocks, and insurance.

This theme's listed players are expected to grow significantly, providing an opportunity to profit from this booming market.

Capital markets make up 47.21% of the fund's varied portfolio, while insurance makes up 52.79%.

The portfolio includes financial product distributors, life and general insurance companies, and capital market organizations.

ICICI Securities, SBI Life Insurance, Anand Rathi Wealth, Angel One, HDFC AMC, and Multi Commodity Exchange of India (MCX) are notable components.

All of the equities in the ETF will be part of the BSE 500 Index.

The maximum number of constituents is set at thirty.

The eligible equities will be ranked according to their average 6-month daily float-adjusted market capitalisation numbers.

The ETF will be recreated semi-annually in June and December, and rebalanced quarterly to ensure optimal performance.

"This ETF is the first in a series of thematic ETFs that we want to launch in the coming months, each geared to capture important megatrends driving India's growth story as it works toward becoming Viksit Bharat by 2047. The ETF market is at a turning point, and we intend to be at the forefront of this transformation, providing investors with products that are not just creative but also relevant for wealth generation and diversification," stated Radhika Gupta, MD & CEO of Edelweiss Mutual Fund.

The portfolio is spread throughout many areas of the financial industry, with large stakes in life insurance (37.57%) and portfolio asset management (15.53%). Key interests include large life insurance companies such as HDFC Life (10.30%) and SBI Life (8.86%). The stockbroking and allied area accounts for 14%, while exchanges and data platforms account for 10.96%, with Multi Commodity Exchange (7.86%) being the largest holding. Depositaries and clearing houses account for 5.02%, while financial product distributors such as Anand Rathi Wealth make up 1.70%.

Fund Details:

Scheme Name: Edelweiss BSE Capital Markets & Insurance ETF

Scheme Type: An open-ended program that replicates/tracks the BSE Capital Markets and Insurance TRI

Benchmark: BSE Capital Markets & Insurance TRI

NFO Period: 10th to 24th December 2024

NAV/unit size: 1/100th value of the BSE Capital Markets & Insurance Index.

Fund Manager: Bhavesh Jain