SBI ETF Nifty 50 outpaces HDFC Equity to become largest equity scheme

SBI ETF Nifty 50, the open-ended scheme from SBI mutual fund outpaced HDFC Equity to become the largest equity scheme of India. HDFC Equity had persistently maintained its position as the largest equity scheme of India for the past three years.
     
According to reports, at present SBI ETF Nifty 50 manages assets worth Rs 19,377 crore compared to assets worth Rs 19,093 crore managed by HDFC Equity.

The HDFC Equity has been among the top five largest equity schemes in the country for the past decades, while it has been around for over 22 years. Whereas, SBI ETF Nifty 50 entered the market just two years ago, becoming the fastest growing equity fund of the industry. 
  
A major driver of the SBI ETF Nifty 50 is the high inflows from Employees’ Provident Fund Organisation (EPFO), that have been increasing its allocation in equities of late.

 Along with the EPFO’s contribution to the ETFs, a good amount of inflow is also sourced from insurance and pension funds. According to the market reports, the fund also got a significant chunk of money from the clutch of exempted provident fund trusts, high net worth individuals and family offices, and financial institutions.

The retirement fund body EPFO had allowed a hike in the investment limit in ETFs to 15 per cent from an earlier 10 per cent, which is expected to result in an infusion of Rs 18,000 to Rs 20,000 crore into equities in the current fiscal year. It is further likely to boost the SBI ETF Nifty 50.
             
As per reports, the SBI ETF Nifty 50 has provided returns of over 19 per cent in just a year’s time.