IISL launches NIFTY Equity Savings Index

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NSE’s index services subsidiary, India Index Services & Products Limited (IISL), has today launched the NIFTY Equity Savings Index.

The NIFTY Equity Savings Index will serve as a benchmark for the equity savings funds offered by various mutual funds. Similar to the investment philosophy of equity savings funds, this index captures performance of a portfolio having exposure to equity, equity arbitrage and debt instruments. This index is a total return index capturing price return and dividend/coupon income.

The NIFTY Equity Savings Index includes the following components:

1) 35% exposure to NIFTY 50 Total Return Index

2) 30% exposure to equity arbitrage (long position in NIFTY 50 Total Return Index and equivalent short position in NIFTY 50 Futures Index)

3) 30% exposure to NIFTY Short Duration Debt Index

4) 5% exposure to NIFTY 1D Rate Index

“The newly launched NIFTY Equity Savings Index appropriately fills the gap that was there due to the absence of a relevant benchmark for performance comparison of the popular Equity Savings Funds category offered by mutual funds in India” said Mukesh Agarwal, CEO – IISL.

The base date for the index is April 01, 2005 and base value is 1000. The index is calculated on an end-of-day basis.