New Satrix ETF to give South Africa’s investors access to India’s equities market

SOUTH AFRICASouth Africa’s leading Exchange Traded Funds (ETF) trader Satrix has launched a new fund that creates investment opportunities in top Indian companies.

Satrix said that as one of the largest and fastest growing economies in the world, India represents a unique investment opportunity among emerging markets.

“We’re pleased to announce the opening of the initial public offering (IPO) for our new Satrix MSCI India Feeder ETF,” Satrix said in a statement.

Inviting participation in the IPO, it said investors will have the benefit of investing in this ETF at listing price and pay zero brokerage and trading fees during the IPO.

The Satrix MSCI India Feeder ETF seeks to track the MSCI India NET TR Index, which provides broad Indian stock market exposure.

“This global ETF will list on the Johannesburg Securities Exchange, and investors will access it in South African Rand. The Satrix MSCI India Feeder ETF seeks to track the investment results of a portfolio of large- and mid-cap stocks covering approximately 85% of the Indian stock market,” the company added.

This includes top Indian companies Reliance Industries, Infosys, Housing Dev Finance Corp, ICICI Bank, TATA Consultancy, Hindustan Unilever, Bajaj Finance, Bharti Airtel, Axis Bank and HCL Technologies.

Making out a case for investing in India amid a global economic downturn, Satrix said investors are increasingly looking for alternative sources of portfolio returns.

“India offers just such an opportunity. India has a fast-growing and increasingly affluent middle class, a very young and educated population, and relatively low wages compared to those in much of the rest of the emerging world. Together with these long-term structural benefits, India also has a government committed to reform,” Satrix said.

Other benefits cited by Satrix include India being extremely technologically advanced, with an open-minded, early adopting youth; low-cost data; and widespread smartphone usage that has fuelled ecommerce and digital banking.

At the same time, Satrix cautioned that investment in this new IPO was suitable only for long-term investment or as a means to express an investment view on India within a broader portfolio.

Satrix, which launched the first ETF in South Africa in 2000, now manages (South African) Rand 130 billion in index-tracking assets across institutional and retail mandates, providing individuals with access to a broad range of local and global indices.

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