A new exchange traded fund (ETF) is on the anvil. As a pre cursor to the new ETF listing, India’s leading stock exchange – NSE, will start disseminating the value of NV20 live on its terminal from Monday, 22 June 2015.
The live real time value will be available in NSE’s Futures & Options segment on its trading terminal. Currently the index value is computed only once at the end of the day.
The Index NV20 is designed to reflect the behaviour and performance of a diversified portfolio of value companies forming a part of CNX Nifty Index. It consists of the 20 most liquid value blue chip companies listed on NSE. The NV20 Index has been computed historically from January 01, 2009.The NV20 Index provides exposure to 8 broader sectors of the economy. Apart from forming an ETF, the Index can be used for a variety of other purposes such as benchmarking fund portfolios, issuance of index funds and structured products.
Infosys, ICICI Bank and Reliance Industries are the top 3 weighted companies in the index. “Stocks are selected on the basis of value parameters like Return on Capital Employed (ROCE), Price to Earning (PE) ratio, Price to book value (PB) ratio and Dividend yield (DY). Since the base of the Index is CNX Nifty, which is the benchmark index of India, only large & liquid value companies form part of NV20 Index”, said Mr Mukesh Agarwal, CEO, IISL.
The NV20 Index is expected to benefit the investors as it has given around 15% return in last 5 years and about 20% return in last 3 years (theoretically computed).
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