International ETFs trade at over 25% premium

WITH THE OVERSEAS investment ceilings from the Secutritiesand Exchange Board of India and the RBI at $7 billion for the mutual fund industry and $1 billion per asset management company in place, investors will find it difficult to put money into these schemes, even in the secondary market,as premiums have shot up.

- ANANYA GROVER

Currently,international equity exchange traded funds (ETFs) are trading ata significant premium of 12-27% over their net asset values.

According to data from Value Research, the international equity category has generated nearly 26% returns year to date, thethird mostaftergoldandsilver schemes.

Ona three-year basis as well, this category generated 25% after commodity schemes, thematic PSU and auto schemes. Net assets under management of schemes related to this category, including fund of funds, index, and ETFs, have seena rise of 21% to $57,910.58 crore.