Indian asset manager Zyfin Holdings has launched the first Indian equity exchange-traded fund (ETF) ever to be listed outside its home country, listing it on the London Stock Exchange and Deutsche Boerse.
The ETF, run in partnership with London-based First Trust Global Portfolios, aims to offer investor exposure to Indian equities by tracking the performance of the MSCI 1/40 index. The ETF, denominated in three currencies – U.S. dollar, euro and pound -- will expose investors to large and mid-cap segments of the Indian equity market.
"We are making it easier for global investors to access Indian markets," Sanjay Sachdev, executive chairman at ZyFin told CNBC via phone. "Indian markets continue to be constant and stable and global investors don't want to invest in emerging markets where they have exposure to countries such as Brazil and Russia. They prefer single focus funds."
The MSCI India 10/40 index comprises of 74 companies that are picked from across sectors such as financials, consumer discretionary and information technology. The index is rebalanced on a quarterly basis for changes in the market capitalization of an index component or its sector classification.