INDL Profile
The Direxion Daily MSCI India Bull 2X Shares is an exchange-traded fund that seeks to provide investors with twice the daily return of the MSCI India Index. Managed by Direxion Funds, the ETF is designed to offer leveraged exposure to the Indian equity market, aiming to deliver twice the performance of the large- and mid-cap segments of the Indian market on a daily basis. Under normal market conditions, the fund invests at least 80% of its net assets in financial instruments that include swap agreements, ETFs that track the MSCI India Index, and other securities that offer leveraged exposure to the index or related ETFs.
The MSCI India Index, which the fund aims to leverage, measures the performance of large- and mid-cap companies in India. It captures approximately 85% of the Indian equity market’s capitalization, providing a comprehensive representation of key players within the Indian economy. The fund's leveraged strategy seeks to amplify daily returns, which can lead to higher gains during positive market movements but also involves increased risk and potential for significant losses.
The ETF employs a range of financial instruments to achieve its investment objectives, including derivative contracts and exchange-traded products. These tools are used to magnify the daily performance of the underlying index, offering investors an opportunity to capitalize on short-term market movements in the Indian equity market. However, the use of leverage and financial derivatives introduces additional risks, including the potential for amplified losses if the market moves contrary to the fund’s positioning.
As a non-diversified fund, the Direxion Daily MSCI India Bull 2X Shares may concentrate its investments in fewer holdings or financial instruments, focusing on those that provide leveraged exposure to the MSCI India Index. This concentrated and leveraged approach is designed for investors seeking to benefit from short-term market trends and willing to accept the associated risks of high volatility and potential for significant swings in performance.
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