India’s oldest ETF gives 16% average return

a person who invested The ETF will now have a value of Rs 1 lakh at the time of its inception 19.4 lakh, as per MintCounting of.

Benchmark Asset Management Company launched the fund on 28 December 2001, the reason being ‘BES’ is still associated with the name of the fund. Since then, it has changed hands three times before becoming part of Nippon India Asset Management Company (AMC).

Nippon India ETF Nifty is in BeES 5,113 crore under management and has an expense ratio of 0.05%.

Exchange-traded funds, or ETFs, are low-cost passive mutual funds that track an index such as the Sensex or Nifty. Some investors prefer passive funds because of their low cost and their track record of outperforming many actively managed funds in terms of returns.

Passive investing was started in the US by Vanguard Group founder John Bogle, and such funds now account for a substantial portion of the assets under management (AUM) of the US mutual fund industry. In contrast, passive funds account for about 10% of AUM in India.

However, over the past 20 years, Indian mutual funds have launched index funds and ETFs that track debt and international indices, such as the S&P 500, in addition to stocks.

Goldman Sachs Asset Management acquired Benchmark Mutual Fund in 2011. Goldman Sachs AMC was acquired by Reliance Capital AMC in 2015.

Reliance AMC eventually became Reliance Nippon AMC, as Nippon Life of Japan progressively increased its stake in the asset manager. In 2019, the Reliance Anil Dhirubhai Ambani Group sold its remaining stake in AMC to Nippon, and the asset manager was renamed Nippon India AMC.