Active ETF launched investing in India
Sydney fund manager India Avenue Investment Management has launched its first active ETF on the Cboe Australia Index.
The India Avenue Equity Fund ETF invests in a range of 60–80 emerging and established companies listed in India, and is actively managed across sectors and industries.
It has a bias towards mid- and small-cap companies, with a focus to find growth companies that are at an early stage of their journey, prior to them being noticed by larger institutional investors.
India Avenue was launched in 2015 in Sydney, and runs an India Avenue Equity Fund and high conviction India 2030 Fund.
It said India is an attractive investment opportunity with a population of 1.4 billion people and promising developments in consumption, services and infrastructure, which are set to benefit from the country’s economic expansion.
“We are pleased to introduce the IAEF Active ETF to investors looking for exposure to India’s growth potential,” said Mugunthan Siva, co-founder and managing director of India Avenue Investment Management.
“As one of the fastest-growing major economies, India presents an attractive investment opportunity. Our ETF offers a straightforward way for investors to access India’s evolving sectors, including technology, manufacturing and infrastructure.
“The India Avenue Active ETF marks the next stage of growth for us as we aim to capture a broader range of investors, including SMSFs, younger cohorts and long-term investors. Our focus on India’s structural transformation, coupled with our local stock-picking skill set, makes this ETF a compelling choice for Australian and New Zealand investors looking to diversify their portfolios and capitalise on the country’s vast potential.”
Last week, Money Management wrote how numerous asset managers are tipped to enter the domestic Australian ETF marketplace as a gateway to exposure in Asia this year. State Street predicted that at least three global asset managers, with FUM of US$100 billion ($157 billion), will enter the local ETF market sometime this year.
Overall, the wide adoption of ETFs across channels in Australia led to 26 per cent growth in 2024, State Street said, citing data which showed high-net-worth individuals are increasingly investing in ETFs via SMSFs. Outside of the retail and SMSF markets, advisers too are planning to increase allocations to ETFs by more than 33 per cent during the next year, the ETF service provider said.
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