ETF that deals i derivatives

F&O
1

Do we have any ETF/MF that deals in derivatives? if so, which are the top ones?

Also, any ETF/MF that strictly deals in high dividend stocks

2

Currently india doesn’t have leveraged Index ETF, whereas US has many leveraged index funds & ETFs

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3

Yeah, I saw something like this in US Market.

Is it not legal in Indian market or just that any firm has not started it yet?
Can we invest in US ETFs from india?

4

Not aware of this info @Bhuvan could you please answer ?

If you are looking for 5X leveraged product. Nifty future or Banknifty Future would serve the need

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5

SEBI doesn’t allow yet.

We’re working on it. Though few platforms offer it, the remittance costs are prohibitively high and the process is broken. We’re figuring solutions for this.

6

When the ETFs listing price is determined???
Is it determined during NFO??
@ShubhS9

7

I had come across article which mentioned that Benchmark AMC (now Nippon Life India Asset Management Limited) had applied for Nifty Inverse ETF back in 2005-2006 but later withdrawn that proposal. A tweet claims that they couldn’t get permission for it back in the day.

Not available in Indian market but there is a Fubon Nifty -1 Inverse Index ETF (TPE:00654R) which follows the NIFTY50 PR 1x Inverse Index & a Fubon Nifty 2X Leveraged Index ETF (TPE:00653L) which follows the NIFTY50 PR 2x Leverage Index.

Also, these leveraged/inverse ETFs have some downsides. In case you are interested, these articles explain this in detail -

US market has a lot of ETFs which deal only in derivatives but it might be illegal for Indians to buy them, (as leveraged trades of any kind are not allowed for money sent outside via LRS). Nithin had also shared his view about this matter sometime back -

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8

Listing price is revealed few days before the listing date. It is mentioned in the exchange circular that announces about their listing (few examples of recent ETF listing circulars - Axis Healthcare ETF, Mirae Asset
NYSE FANG+ ETF, Axis AAA Bond Plus SDL ETF - 2026 Maturity)

As per a SEBI circular (SEBI/IMD/CIR No 18 /198647/2010) -

Mutual Funds/AMCs shall make investment out of the NFO proceeds only on or after the closure of the NFO period.

Initial offer period and time taken for allotment of units and dispatch of accounts statements
“It has been decided that the present limit of maximum period of 30 days in case of Open ended schemes and 45 days of close ended scheme shall be reduced to 15 days (except ELSS schemes). Mutual Funds/ AMCs shall use the NFO proceeds only on or after the closure of the NFO period. The mutual fund should allot units/refund of money and dispatch statements of accounts within five business days from the closure of the NFO and all the schemes (except ELSS) shall be available for ongoing repurchase/sale/trading within five business days of allotment”

9

@siva when you people will start USA investing its long time and years are gone , all other broker are already implemented , when you will launch international investing , are you seriously working on this or not

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10

yes, would help if you publish timelines for international investments

11

As mentioned till we find a solution for remittance part we are not going to offer it, but yes we are working on it, can take another 6 months or 1 year.

12

Thanks Prayag.

This was helpful