Three Nifty-based exchange traded funds (ETFs), including- Fubon Nifty, Fubon Nifty 2X Leveraged Index and Fubon Nifty -1 Inverse Index, got listed on the Taiwan Stock Exchange (TWSE) on Tuesday. This is the first instance of an ETF being launched in Taiwan that tracks Indian stocks. With this, Nifty-based ETFs are now available on 19 stock exchanges across the world. The three ETFs which debuted on the TWSE were created and will be managed by India Index Services and Products (IISL), a NSE group company which provides a variety of indices and index related services for capital markets.
“Introduction of the Fubon Nifty ETFs, consistent with the promotion of the financial import substitution program, will boost the growth of Taiwan’s ETF market. With the support of the relevant authorities, we are also committed to deepening the cooperation between Taiwan and India, as well as other markets, to provide more diversified products for investors”, said Sush-Der Lee, chairman, TWSE.
According to experts, India, the third-largest market in Asia in terms of market value, is emerging as an important market for risk diversification by Chinese investors. The India Index ETFs launched by Fubon Asset Management can not only help investors diversify portfolio risks but also provide leverage and the ability to bet against Indian stocks. According to the Securities Investment Trust and Consulting Association, Taiwanese investors invested around $20.2 billion in single-country offshore funds including, $1.5 billion in Indian funds in 2015.