Important Information

Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:

Global X India Select Top 10 ETF (the “Fund”) seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Mirae Asset India Select Top 10 Index (the “Underlying Index”).
The Underlying Index is a new index. The Underlying Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history. The Underlying Index is an equal weighted index whereby the Underlying Index constituents will have the same weighting at each rebalancing (but not between each rebalancing) regardless of its size or market capitalisation based on the methodology of the Underlying Index.
The Fund is a FPI registered with the SEBI. The applicable laws, rules and guidelines on FPI impose limits on the ability of FPI to acquire shares in certain Indian issuers from time to time and are subject to change. This may also adversely affect the performance of the Fund. The FPI status of the Fund may be revoked by the SEBI under certain circumstances. In the event the Fund’s registration as a FPI is cancelled, revoked, terminated or not renewed, this would adversely impact the ability of the Fund to make further investments, or to hold and dispose of existing investment in Indian securities. The Fund may be required to liquidate all holdings in Indian securities acquired by the Fund as a FPI. Such liquidation may have to be undertaken at a substantial discount and the Fund may suffer significant/substantial losses.
The Fund’s investments are concentrated in securities in India. The Fund’s value may be more volatile than that of a fund with a more diverse portfolio. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Indian market.
The Fund’s investments are concentrated in companies in various sectors and themes including communication services, information technology, financials, health care, consumer staples and consumer discretionary, industrials and energy. Fluctuations in the business for companies in these sectors or themes will have an adverse impact on the Net Asset Value of the Fund.
The number of constituents of the Underlying Index is fixed at 10. The Fund by tracking the Underlying Index may have a more concentrated investment portfolio than it would have held if tracking an index with a higher number of constituents, leading to higher risks of volatility.
High market volatility and potential settlement difficulties in the equity market in India may result in significant fluctuations in the prices of the securities traded on such market and thereby may adversely affect the value of the Fund. The BSE has the right to suspend trading in any security traded thereon. The Indian government or the regulators in India may also implement policies that may affect the Indian financial markets. There may also be difficulty in obtaining information on Indian companies as disclosure and regulatory standards in India are less stringent than those of developed countries.
The taxation of income and capital gains in India is subject to the fiscal law of India. The tax rate in respect of capital gains derived by a FPI on transfer of securities will vary depending upon various factors. Any increased tax liabilities on the Fund may adversely affect the Net Asset Value of the Fund. Any shortfall between the provision and the actual tax liabilities, which will be debited from the assets of the Fund, will adversely affect its Net Asset Value. For details, please refer to the section headed “Taxation in India” in the Prospectus.
Underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. In addition, the base currency of the Fund is USD but the trading currency of the Fund is in HKD. The Net Asset Value of the Fund and its performance may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s Net Asset Value.
Payments of distributions out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions involving payment of dividends out of capital or effectively out of capital of the Fund may result in an immediate reduction in the Net Asset Value per Unit of the Fund and will reduce the capital available for future investment.

Proved Resilience of the India Market amid Global Turmoil

By: Lizzy Liu

India’s growth outlook remains intact, and its resilience has been further reinforced during recent global turmoil, with India index outperforming other major markets and the INR holding steady against significant fluctuations of other currencies. The country’s economic growth is supported by key structural factors, including favourable demographics, improving infrastructure and robust domestic demand. Moreover, despite a weaker mandate of Modi, the policy predictability and macroeconomic stability are expected to continue benefiting the stock market.

The Global X India Select Top 10 ETF (3184 HK) enables access to high-growth potential through investments in leading Indian companies that represent the most significant sectors of the Indian economy.

A Defensive Play under Global Uncertainties

YTD, India market has maintained its outperformance, with the MSCI India index rising by 22%¹, surpassing the performance of other major markets. This outperformance has held up well during the recent correction in early August.

The performance of the Indian market has exhibited a low correlation with emerging markets. India stands out as one of the most compelling growth stories within emerging markets and could serve as a defensive play amid concerns surrounding a potential hard landing in the US, uncertainties regarding trade tariffs on China, and escalating geopolitical tensions, notably in the Middle East.

Comparing with popular indices in India, the underlying index of the Global X India Select Top 10 ETF (3184 HK) — the Mirae Asset India Select Top 10 Index — has outperformed both the Sensex and Nifty 50 YTD². Our product offers investors exposure to a select group of leading Indian companies across crucial sectors of the Indian economy. Industry leaders benefit from favourable financing conditions, first-mover advantages, and competitive moats in our view.

The Indian Rupee (INR) has also demonstrated a stable trend YTD, experiencing a modest depreciation of 1%³, in contrast to the fluctuations observed in other currencies. Notably, there has been a recent surge in FX volatility, especially concerning the JPY. A cheap yet stable INR can favour both India’s equities and exports.

Update on Key Contributors of India Select Top 10 ETF (3184 HK)

Infosys and Sun Pharma have been standout performers among our holdings over the past three months. Both companies delivered robust earnings in 1QFY25 and have a rosy outlook for the entire year.

Infosys (INFO IN): Infosys 1QFY25 results was a clear beat post 5 challenging quarters. The solid performance showcased growth across most segments, margin expansion, and solid deal momentum. Revenue was up 3.6%/2.5% QoQ/YoY to US$4,714mn in constant currency (CC) terms. BFSI stood out with an impressive 8% QoQ growth. OPM also saw a healthy expansion of 100bps QoQ to 21.1%, primarily attributed to Project Maximus.⁴

Large deal win momentum remains robust, with the total contract value (TCV) of large deals on a net new basis amounting to US$2.4bn, bolstering the outlook for FY25. The company has raised its revenue CC growth guidance for FY25 from the earlier range of 1-3% to 3-4%. This lifted FY25 guidance primarily factors inorganic growth. Management’s positive remarks on the recovery of the North American BFSI sector have shed light on potential additional upgrades.⁵

Sun Pharmaceutical Indus (SUNP IN): 1Q revenue reached INR126.5bn, up 6% YoY. This increase was primarily propelled by robust sales in India (+16.4% YoY), partially offset by sluggish US sales (-1% YoY). The EBITDA margins stood strong at 28.9%, up 103/311bps YoY/QoQ. The strong EBITDA beat was attributed to higher GPM supported by a favourable product mix and reduced R&D costs.⁶

Sun Pharma achieved US FDA approval for Leqselvi (deuruxolitinib 8mg tablet) on July 25 for treating severe alopecia areata in adults, potentially boosting specialty sales beyond its flagship brand, Ilumya. The growth prospects for the company’s key brands, including Ilumya, Winlevi, and Cequa, look promising due to improved access in payor channels. Moreover, Sun Pharma has six R&D assets in its specialty pipeline, with anticipated data readouts for three drugs expected within the next 12-18 months.⁷

Related Global X ETFs’ Product⁸

	Global X India Select Top 10 ETF (3184 HK)
Listing Date	19 Mar 2024
Reference Index	Mirae Asset India Select Top 10 Index
Primary Exchange	Hong Kong Stock Exchange
Ongoing Charges Over A Year	0.68% p.a.
Product Page	Link

The Fund adopts a single management fee structure, whereby a single flat fee will be paid out of the assets of the Fund to cover all of the costs, fees and expenses of the Fund. As the Fund is newly set up, this figure is an estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average Net Asset Value of the Listed Class of Units of the Fund over the same period. It may be different upon actual operation of the Fund and may vary from year to year. As the Fund adopts a single management fee structure, the estimated ongoing charges of the Fund will be equal to the amount of the single management fee, which is capped at 0.68% of the average Net Asset Value of the Listed Class of Units of the Fund. Any ongoing expenses exceeding 0.68% of the average Net Asset Value of the Listed Class of Units of the Fund will be borne by the Manager and will not be charged to the Fund. Please refer to the Key Facts Statement and the Prospectus for further details.

Disclaimer

This document contains the opinions of Mirae Asset Global Investments (Hong Kong) Limited (“MAGIHK”) and is intended for your use only.

It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument and shall not constitute any form of regulated financial advice, legal, tax or other regulated service. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. MAGIHK makes no representation as to their accuracy or completeness and therefore do not accept any liability for a loss arising from the use of this document.

Investment involves risk. Forecasts, past information and estimates have certain inherent limitations. Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these opinions are suitable for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

Past performance information presented is not indicative of future performance. Before making any investment decision, investors should read the fund’s offering document for further details including the risk factors. Investors should ensure they fully understand the risks associated with the applicable investment and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice if in doubt.

Certain information contained herein (the “Information”) is sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or their affiliates (“MSCI”), or information providers (together the “MSCI Parties”) and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Issuer: Mirae Asset Global Investments (Hong Kong) Limited (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK.

Authors: Zijun Liu (Licensed by the Securities and Futures Commission for Types 1 and 4 regulated activities under the Securities and Futures Ordinance). The authors and their associate(s) do not hold the securities/funds mentioned in the article.