The National Stock Exchange’s (NSEs) arm India Index Services & Products Ltd (IISL) has launched Nifty equity savings index that will serve as benchmark for equity saving funds offered by various mutual funds. The index will capture performance of portfolio having exposure to equity, equity arbitrage and debt instruments in similar way to the investment philosophy of equity savings funds.
Nifty equity savings index
The index is total return index capturing price return and dividend or coupon income. Its components are 30% exposure to Nifty 50 total return index; 30% exposure to equity arbitrage (long position in Nifty 50 total return index and equivalent short position in Nifty 50 futures Index); 30% exposure to Nifty short duration debt index; and 5% exposure to Nifty 1D rate index. The base date for index is April 1, 2005 and base value is 1,000. It will be calculated on an end-of-day basis. It will help to fill gap that was there due to absence of relevant benchmark for performance comparison of popular equity savings funds category offered by mutual funds in India.
Index Services & Products Ltd (IISL)
It is subsidiary of National Stock Exchange of India (NSE). It provides variety of indices and index related services and products for Indian capital markets. It is based in Mumbai, Maharashtra. It was founded in March 1998 with objective of providing variety of indices and index related services and products for capital markets. It operates as a subsidiary of NSE Strategic Investment Corporation Limited. It maintains over 100 equity indices comprising broad-based benchmark indices, sectoral indices and customized indices.