Bharat 22 ETF open now; 5 key things to know
ETMarkets.com|
Updated: Nov 15, 2017, 03.15 PM IST
NEW DELHI: Bharat 22 Exchange Traded Fund (ETF), through which the government is looking to sell at least shares worth Rs 8,000 crore it holds in number of companies, will open for non-anchor investor on Wednesday. The issue closes on November 17.
This ETF is a part of government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management. Through the ETF, ICICI Prudential AMC proposed to raise an initial amount of Rs 8,000 crore plus additional amount subject to approval from the Government of India.
The issue opened for anchor investors on Tuesday, and it will be listed on both BSE and NSE.
Composition: The ETF comprises 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs). No sector crosses the 20 per cent sectoral capping and there is a stock capping of 15 per cent. Apart from CPSEs and PSBs, this ETF also includes the government's strategic holding in Axis Bank, ITC and L&T held through the Specified Undertaking of Unit Trust of India (SUUTI).
Discount: A discount of 3 per cent has been offered to all categories of investors including anchor investors, retail individual investors, retirement funds, QIBs and non-institutional investors.
Should you invest: Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company believes that the ETF offers an attractive long term investment opportunity to partake in the India growth story by way of a diversified blend of companies spread across several sectors and are available at attractive valuation and a good subscription discount. The highlight of the Scheme is its in-built mechanism for rebalancing and ability for periodic booking in stocks which has delivered better returns.
Expense ratio: The total expense ratio of Bharat 22 ETF is up to 1 basis points, which is the lowest in the Indian ETF universe.
Minimum investment: Minimum application amount of Rs 5,000 (and in multiples of Re 1) is required for retail individual investors up to Rs 2 lakh.
This ETF is a part of government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management. Through the ETF, ICICI Prudential AMC proposed to raise an initial amount of Rs 8,000 crore plus additional amount subject to approval from the Government of India.
The issue opened for anchor investors on Tuesday, and it will be listed on both BSE and NSE.
Composition: The ETF comprises 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs). No sector crosses the 20 per cent sectoral capping and there is a stock capping of 15 per cent. Apart from CPSEs and PSBs, this ETF also includes the government's strategic holding in Axis Bank, ITC and L&T held through the Specified Undertaking of Unit Trust of India (SUUTI).
Discount: A discount of 3 per cent has been offered to all categories of investors including anchor investors, retail individual investors, retirement funds, QIBs and non-institutional investors.
Should you invest: Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company believes that the ETF offers an attractive long term investment opportunity to partake in the India growth story by way of a diversified blend of companies spread across several sectors and are available at attractive valuation and a good subscription discount. The highlight of the Scheme is its in-built mechanism for rebalancing and ability for periodic booking in stocks which has delivered better returns.
Expense ratio: The total expense ratio of Bharat 22 ETF is up to 1 basis points, which is the lowest in the Indian ETF universe.
Minimum investment: Minimum application amount of Rs 5,000 (and in multiples of Re 1) is required for retail individual investors up to Rs 2 lakh.
