Amundi MSCI India II UCITS ETF USD Acc

Issuer: Amundi ETF

Asset Class: Equity

TER: 85bps

Trading Currency: GBX

Pays Income: False

Listing Date: 15 Nov 2012

Ticker: INRL

ISIN: FR0010375766

This investment vehicle offers targeted exposure to the Indian equity market, tapping into one of the world's fastest-growing major economies. India's growth story is propelled by powerful long-term drivers, including favourable demographics with a large, young, and increasingly skilled workforce, and a burgeoning middle class that fuels domestic consumption. Ongoing economic reforms aimed at improving infrastructure, simplifying regulations, and encouraging foreign investment have further enhanced the country's appeal. By investing in a broad basket of Indian companies, one can participate in the potential upside from these structural tailwinds, making it a compelling component for a diversified global portfolio seeking exposure to high-growth emerging markets.

The fund aims to replicate the performance of a benchmark that captures the large and mid-cap segments of the Indian stock market. This benchmark covers approximately 85% of the free float-adjusted market capitalization in India, providing comprehensive exposure to the country's most significant and liquid companies. The index is diversified across key sectors that are integral to India's economy, including financials, information technology, consumer discretionary, materials, and energy. This broad diversification helps to mitigate single-stock risk while capturing the overall market trend, reflecting the performance of the Indian economy's leading sectors and enterprises.

Structurally, this product is a UCITS-compliant exchange-traded fund that utilizes a synthetic replication method. This swap-based approach can potentially offer more precise tracking of the index with lower tracking error, which can be particularly advantageous in markets like India where direct ownership of securities might present administrative or liquidity challenges. It provides a convenient, single-trade solution for investors to gain efficient and cost-effective access to the Indian growth narrative. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested within the fund, fostering the potential for compounded growth over the long term.