India Leveraged ETF: A Comprehensive Guide

India Leveraged ETFs are designed to provide investors with a way to gain exposure to the Indian market with a potential for amplified returns.

These ETFs use leverage, which means they borrow money to buy more securities than they would with their own funds, allowing for increased potential returns.

However, leverage also amplifies losses, so it's essential to understand the risks involved.

Investors should carefully consider their risk tolerance and financial goals before investing in a leveraged ETF.

India leveraged ETFs offer a unique way to invest in the country's stock market with borrowed money, allowing for potential higher returns but also increased risks.

The minimum investment required to invest in India leveraged ETFs is ₹50,000, as mentioned in the article section.

By using borrowed money, investors can potentially earn higher returns, but they also face the risk of significant losses if the market declines.

India leveraged ETFs typically charge a management fee of up to 1.5% per annum, which is deducted from the investor's returns.

Investors should carefully consider their risk tolerance and financial goals before investing in India leveraged ETFs, as they can be complex and volatile.

The leverage ratio in India leveraged ETFs can range from 2x to 3x, meaning the ETF's value can fluctuate significantly in both directions.

Performance is a key aspect to consider when investing in an India Leveraged ETF.

The fund's net asset value (NAV) and market price have shown a decline over the past year, with a 1-year return of -3.26% as of February 19, 2025.

The fund's performance can be measured over various time periods, including 1 month, 3 months, year-to-date, 1 year, 3 years, 5 years, and 10 years.

Here's a summary of the fund's returns over these periods:

It's essential to note that short-term performance is not a reliable indicator of a fund's future performance.

The volatility of a leveraged ETF can be a major concern for investors, and in the case of the Leverage Shares 3x Long India ETP Securities, it's a whopping 29.79% over the past year.

Volatility can be a wild ride, but it's essential to know the maximum drawdown, which in this case is a significant -37.40% over the past year.

The Sharpe Ratio is a measure of risk-adjusted return, and unfortunately, the Leverage Shares 3x Long India ETP Securities has a negative Sharpe Ratio of -0.44 over the past year.

The volatility of a financial instrument is a crucial aspect to consider, and in the case of the Leverage Shares 3x Long India ETP Securities, it stands at 29.79% over the past year.

This level of volatility can result in significant fluctuations in the instrument's value, and it's essential to be aware of this risk.

The maximum drawdown, or the largest decline in value, for this instrument is -37.40% over the past year, 3 years, and 5 years.

This means that if you had invested in this instrument at its peak, you could have potentially lost up to 37.40% of your investment.

A Sharpe Ratio of -0.44 indicates that the returns on this instrument have not been sufficient to compensate for the level of risk taken, at least over the past year, 3 years, and 5 years.

A higher Sharpe Ratio is generally considered better, as it indicates that the returns are more in line with the level of risk.

The XLM (a measure of the instrument's performance) is 540.72, but without more context, it's difficult to say what this number actually means.

Here's a summary of the key risk metrics for the Leverage Shares 3x Long India ETP Securities:

The ticker 3IND represents Leverage Shares 3x Long India ETP Securities.

This ticker is associated with a specific investment product that tracks the performance of the Indian market.

The value of this investment product has shown significant growth, including dividends.

Investors should carefully consider the risks and potential rewards associated with this and other investment products.

In this case, the ticker 3IND indicates a 3x leverage, meaning the investment product aims to amplify the returns of the underlying market.