Nippon India ETF Nifty IT · NSE:ITBEES
Nippon India ETF Nifty IT — Nippon India Nifty Realty Index Fund — Investor Presentation (November 2024)
32 slides from Nippon India ETF Nifty IT's investor presentation, Nov 14, 2024
Slide 1: Nippon India Nifty Realty Index Fund
Nippon India Nifty Realty Index Fund (An open-ended scheme replicating/tracking Nifty Realty Index) New Fund Offer Opens on November 14, 2024 New Fund Offer Closes on November 28, 2024 Offer of Units of Rs. 10/- each during the New Fund Offer and Continuous offer for Units at NAV based Prices Produc
Slide 2: Overview - Real Estate Sector in India
Overview - Real Estate Sector in India 2
Slide 3: Evolving Landscape of the Indian Real Estate Market
Evolving Landscape of the Indian Real Estate Market • Absence of robust regulatory framework, especially related to buyer protection Pre-2016 • Uncertain timelines for project completion and delivery • NBFCs were key sources of funding • Demonetisation, RERA, GST, Benami Transaction Amendment Act, I
Slide 4: Segments in Indian Real Estate
Segments in Indian Real Estate • Properties used as homes or for non-professional Residential purposes. Includes apartments, villas and plots • One of the fastest growing segments • Caters to the needs of businesses and industries Commercial • Comprises office spaces, warehouses and data centers Ret
Slide 5: Engine of Employment
Engine of Employment Contribution as a % of Total Employment People Employed in Real Estate (Crore) 8 7.1 7 6.7 17.5% No. of People Employed (Crore) 6 5.2 5 4.0 4 3 2 82.5% 1 0 Real Estate Others 2013 2017 2022 2023 ➢ Second largest employment generator after Agriculture, contributing ~18% of the to
Slide 6: Indian Real Estate – Multiple Growth Drivers
Indian Real Estate – Multiple Growth Drivers 6
Slide 7: 1. Growing Economy
1. Growing Economy 12.0 Annual GDP Growth (%) 9.7 8.0 8.3 8.0 7.4 7.0 6.8 Annual GDP Growth (%) 6.4 6.5 3.9 4.0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -4.0 -5.8 -8.0 ➢ The economy continues to grow with a GDP growth rate of 7.0%. ➢ In terms of output, the market size of India’s real e
Slide 8: 2. Policy Support (1/2)
2. Policy Support (1/2) ▪ FDI in Retail & Real Estate: o FDI in retail has boosted developer sentiment to establish shopping malls and high street in India. o FDI of up to 100% for development of townships, housing and settlements projects has made it one of the leading recipient of FDI inflows, whi
Slide 9: 2. Policy Support (2/2)
2. Policy Support (2/2) ▪ Pradhan Mantri Awas Yojna (PMAY): Launched to provide affordable housing, PMAY aims to construct millions of houses for the urban poor. o In Budget 2024-25, Under PMAY Urban 2.0, housing needs for 1 crore urban poor and middle-class families will be met with a Rs. 10 lakh c
Slide 10: 3. Adoption of Technology
3. Adoption of Technology ▪ Increase in Proptech companies: o Proptechs such as No-broker, Housing.com, Square Yards, Livespace etc. provide innovative solutions to help investors in decision making. (E.g. Virtual tours, Online property listings etc.) o Proptech start-ups raised USD 2.4 bn between J
Slide 11: 4. Changing Trend in Housing Demand
4. Changing Trend in Housing Demand Share Of Housing Sales across Ticket Sizes (%)* 100 16 18 20 21 27 30 Residential Sales across Ticket Sizes (%) 80 30 33 35 60 37 36 38 40 54 48 45 20 42 37 32 0 2018 2019 2020 2021 2022 2023 < INR 50 Lakh INR 50 Lakh-1 Crore > INR 1 Crore ➢ The share of housing s
Slide 12: 5. Improving Affordability (1/3)
5. Improving Affordability (1/3) 60% Residential Prices across Cities 40% 20% 0% -20% -40% -60% -80% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* Bangalore Chennai Hyderabad Pune Mumbai Gurugram Noida Thane ➢ Adjusted for inflation, the housing prices have declined in most top c
Slide 13: 5. Improving Affordability (2/3)
5. Improving Affordability (2/3) 14% Mortgage Rate 12.75% 13% 12% 11.00% 11% 10.15% 10.00% 9.90% 10% 9.15% 9.75% 9.95% 8.70% 8.90% 8.75% 9% 8.10% 8.05% 8% 7% 6.80% 6% 6.70% 5% Apr-05 Apr-07 Apr-09 Apr-11 Apr-13 Apr-15 Apr-17 Apr-19 Apr-21 Apr-23 Dec-21 Dec-03 Aug-04 Dec-05 Aug-06 Dec-07 Aug-08 Dec-0
Slide 14: 5. Improving Affordability (3/3)
5. Improving Affordability (3/3) 60 Affordability Ratio (Home loan payment/income) 50 50 48 44 40 38 36 34 33 30 30 27 28 20 10 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ➢ Income growth over the last 10 years has outpaced property price inflation ➢ Government incentives towards housing has
Slide 15: Indian Real Estate – Current Scenario
Indian Real Estate – Current Scenario 15
Slide 16: Reducing Inventory Overhang
Reducing Inventory Overhang Unsold Inventory and Inventory Overhang Trend 1,400,000 45 40 1,200,000 35 1,000,000 30 800,000 25 Months Units 600,000 20 15 400,000 10 200,000 5 0 0 Q3-2011 Q1-2017 Q1-2008 Q3-2008 Q1-2009 Q3-2009 Q1-2010 Q3-2010 Q1-2011 Q1-2012 Q3-2012 Q1-2013 Q3-2013 Q1-2014 Q3-2014 Q
Slide 17: Increasing Housing Sales - All Time High
Increasing Housing Sales - All Time High 500 Launches Sales 454 450 391 400 366 375 359 357 341 350 (Units in ‘000) 313 303 306 308312 291 289 300 282 271 274 284 283 245241 247 250 220 230 200 150 100 50 0 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 ➢ All tim
Slide 18: Improving Fundamentals - Nifty Realty Index
Improving Fundamentals - Nifty Realty Index Return on Assets (%) Return on Equity (%) 5.0 14 12 11.3 4.0 3.7 10 9.4 3.0 3.0 2.8 2.4 8 6.5 6.1 2.0 1.7 6 4.6 1.5 1.5 1.5 4.4 1.2 3.6 4 2.9 2.5 1.0 0.7 1.9 2 0.0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021
Slide 19: Nifty Realty – Valuations
Nifty Realty – Valuations Price-to-Earnings (P/E) Ratio Dates Nifty Realty P/E Current 31-Oct-24 47.6 10 years back 31-Oct-14 30.4 Discount/Premium 56.2% ➢ Currently, the Nifty Realty index is valued at a P/E ratio of 47.6x, which represents a 56% premium relative to its level from ten years prior ➢
Slide 20: Nifty Realty Index
Nifty Realty Index y @ Nippon india Mutual Fund 20 Wealth sets you Free
Slide 21: Nifty Realty Index – Methodology
Nifty Realty Index – Methodology ▪ Companies should form part of – Universe ✓ Nifty 500^ ✓ Realty sector ▪ The company's trading frequency should be at least 90% in the last six months Eligibility ▪ The company should have a minimum listing history of 1 calendar month as on cutoff date ▪ Final selec
Slide 22: Nifty Realty Index – Constituents
Nifty Realty Index – Constituents Index Constituents Sr Weight Sr Weight Stocks Stocks No. (%) No. (%) 1 DLF Ltd. 22.9 6 Oberoi Realty Ltd. 10.1 2 Macrotech Developers Ltd. 14.6 7 Brigade Enterprises Ltd. 7.1 3 Godrej Properties Ltd. 14.5 8 Sobha Ltd. 2.5 4 Phoenix Mills Ltd. 12.4 9 Raymond Ltd. 2.4
Slide 23: Performance – Since 2016 (The year RERA was implemented)
Performance – Since 2016 (The year RERA was implemented) Absolute (%) Compound Annualized Growth Rate (%) Index Name 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Nifty Realty TRI -9.1 -8.5 3.0 66.0 26.4 30.4 18.0 Nifty Realty TRI 70,000 60,000 (5.9x) 50,000 Period: January 01, 2016 to O
Slide 24: Performance – Calendar Year Returns Nifty Realty TRI
Performance – Calendar Year Returns 140 Nifty Realty TRI 111 Post RERA 100 82 73 71 60 53 55 29 28 Returns (%) 20 11 6 -4 -20 -14 -11 -25 -34 -33 -60 -51 -82 -100 2014 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD ➢ Nifty Realty TRI has given an average ret
Slide 25: Fund Overview
Fund Overview y @ Nippon india Mutual Fund 25 Wealth sets you Free
Slide 26: Benefits of Investing in an Index Fund
Benefits of Investing in an Index Fund Constructed to track an index Open ended mutual fund Diversification through a single unit Index Fund Advantages Generally lower expense ratio as compared to an actively managed equity fund Performance tracking the underlying benchmark index (subject to expense
Slide 27: Why Invest in Nippon India Nifty Realty Index Fund
Why Invest in Nippon India Nifty Realty Index Fund • Provides exposure to top 10 Real Estate stocks listed Sector Exposure on NSE* • Elimination of non-systematic risks like stock picking Reduced Risk and portfolio manager selection • Will also allow non-demat account holders to seek Convenience exp
Slide 28: Nippon India Nifty Realty Index Fund – About The Scheme
Nippon India Nifty Realty Index Fund – About The Scheme Investment objective The investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty Realty Index before expenses, subject to tracking errors. However,
Slide 29: Nippon India Nifty Realty Index Fund – Details
Nippon India Nifty Realty Index Fund – Details Scheme Features NFO Opens on November 14, 2024 NFO Closes on November 28, 2024 Benchmark Index Nifty Realty TRI Fund Manager Himanshu Mange Load Structure Exit Load : NIL During NFO: Minimum amount of Rs.1,000 and in multiples of Re.1 thereafter Minimum
Slide 30: Disclaimers
Disclaimers Disclaimer by the Index Provider: Performance of the underlying index will have a direct bearing on the performance of the Scheme. In the event the index is dissolved or is withdrawn by the index provider, the Trustee reserves a right to modify the Scheme so as to track a different and s
Slide 31: Disclaimer
Disclaimer • Risk Factors: Mutual Funds and securities investments are subject to market risks such as trading volumes, settlement risk, liquidity risk and default risk including the possible loss of principal and there is no assurance or guarantee that the objectives of the Scheme will be achieved.
Slide 32: Thank you for your time!
<Q) Nippon india Mutual Fund Wealth sets you free Thank you for your time! y @ Nippon india Mutual Fund 32 Wealth sets you Free
Nippon India Nifty Realty Index Fund — Investor Presentation (November 2024) on 6ix