New Exchange Traded Fund announced

Compared to energy heavy CPSE ETF, Bharat 22 is a well diversified portfolio with six sectors

GN Bureau | August 8, 2017


#CPSE   #Arun Jaitley   #exchange traded fund   #Bharat 22 index   #ICICI Prudential AMC  

 Finance minister Arun Jaitley has announced a new Exchange Traded Fund (ETF) —   BHARAT 22 which consists of 22 stocks of CPSE’s, public sector banks and strategic holding of SUUTI.

Compared to energy heavy CPSE ETF, Bharat 22 is a well diversified portfolio with six sectors (basic materials, energy, finance, FMCG, industrials and utilities). Bharat 22 Index will be rebalanced annually. A PIB release said that ICICI Prudential AMC will be the ETF manager and Asia Index Private Limited (JV BSE and S& P Global) will be index provider.
 
In the 2017-18 budget speech, Jaitley had promised to use ETF as a vehicle for further disinvestment of shares. The target for CPSE’s disinvestment in 2017-18 was set at Rs 72,500 crore. During the current FY 2017-18, the government has realised approx Rs 9,300 crore through nine disinvestment transactions so far.
 
ETF assets have grown significantly across the world. Globally, today there are $4 trillion worth Assets Under Management (AUM). These are expected to touch $7 trillion by 2021. Large Investors prefer investing in ETFs due to the benefits of  ETF being low cost and less risky; being highly liquid assets; Transparent Investment and that these can be traded at real time market price.
 

Comments

 

Other News

New Delhi’s Indo-Pacific strategy enters a new phase

India appears to be investing fresh dynamism in its Indo-Pacific strategy. At the time when the US, under president Donald Trump, has adopted a conciliatory approach towards China and has changed the name of America’s Indo-Pacific Command to just Pacific Command, India has quietly moved towards con

CAG flags major fiscal lapses in Maharashtra

Maharashtra`s fiscal management has come under sharp scrutiny after the Comptroller and Auditor General (CAG) of India, in its State Finances Audit Report for 2024-25, flagged significant budgetary inefficiencies, accounting irregularities, understatement of key fiscal indicators and widespread governanc

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.  

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded.  India`





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter