This Issue - Icwai
This Issue - Icwai
This Issue - Icwai
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CAPITAL CAPITAL MARKET<br />
MARKET<br />
bill because of its diversification it is a less risky<br />
proposition to invest and it has a quality of the stock.<br />
To understand the composition of the ETF we have<br />
taken two ETFs.<br />
iShares S & P India Nifty 50 Index Fund<br />
It is the fund issued by iShares. It seeks investment<br />
results corresponding to price and the yield<br />
performance, before expense and fees, of S&P CNX<br />
Nifty Index.<br />
It is traded in NASDAQ. The inception day of the<br />
fund is 18th November 2009. It has a total of 51 holdings<br />
and the NAV value as on 5th May 2011 was $28.25<br />
and the total Share outstanding is 7,650,000<br />
A detailed overview in terms of its holding and<br />
the sector allocation is mentioned below :<br />
With the help of Fig. 3, we can understand the top<br />
holding of iShares S&P India Nifty 50 Index Fund. The<br />
fund has invested in almost all the good companies or<br />
the companies which are referred to as blue chip<br />
companies. These companies have less risk involved.<br />
Top Holdings of iShares S & P India<br />
Nifty 50 Index Fund<br />
Source : As per the information gathered from the source http://<br />
us.ishares.com/product info/fund/overview/INDY.htm.<br />
Fig. : 3<br />
iShares S & P India Nifty 50 Index Fund (INDY)<br />
—Fund —Index<br />
Base Currency of Fund : USD<br />
Performance is calculated cumulatively based on the start<br />
date indicated above. The default start date is the fund<br />
inception date.<br />
Source : http://us.ishares.com/product info/fund/overview/<br />
INDY.htm<br />
Fig. 4<br />
Sector Distribution of the Fund as of 5 th May 2011<br />
Computers—software<br />
Automobiles—4 Wheelers<br />
Finance—Houisng<br />
Others/Undefined<br />
Source : As per the information gathered from the source http://<br />
us.ishares.com/product info/fund/overview/INDY.htm<br />
Fig. 5<br />
Referring to Fig. 5, we can infer that the fund has<br />
invested mostly in Banks and Automobile Sector<br />
which is the growing industry/sector in India.<br />
As we see from the allocation, the fund has<br />
invested in growing sector like banks, computersoftware<br />
and its top holdings include shares like<br />
Infosys and Reliance—giving the benefit of the all the<br />
good stock with lesser risk.<br />
One of the other examples is Power Shares India<br />
Portfolio ETF.<br />
PowerShares India Portfolio ETF<br />
<strong>This</strong> fund is issued by Powershares. It is based on<br />
Indus India Index. It invests almost 90% of its total<br />
assets in securities that comprise the Index and ADRs<br />
based on the securities on the index. It replicates the<br />
Indian equity markets as a whole. It has a group of 50<br />
Indian stocks selected from the list of largest listed<br />
companies listed on National Stock exchange and<br />
Bombay Stock exchange.<br />
<strong>This</strong> ETF is traded in almost all US stock markets.<br />
The inception date of the fund is 3/5/2008. Its NAV<br />
value and share outstanding as on 5/10/2011 is 23.7MM.<br />
Top Fund Holding of Power Shares India Portfolio ETF<br />
Source : As per the information gathered from the source<br />
http://www.invescopowershares.com/products/overview.<br />
aspx?ticker=PIN#perfchart<br />
Fig. 6<br />
The Management Accountant |September 2011 773
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