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

Reinvigorating reinsurance

After the liberalisation of the insurance industry in 2000, private firms (mostly in partnerships with foreign firms) have readily taken to the sector. Till FY18 there were 23 private firms in the life insurance sector and 21 in general insurance segment. However, it was only in 2016-17 that the first priv

Portrait of a scholar-activist as a young student

[Kancha Ilaiah Shepherd, scholar and dalit activist, has penned his autobiography which is more than just the life-story of an individual but promises to become a document for a generation and a community. We reproduce below an excerpt, with the permission of the publishers, where he talks about his yo

Informal power

Villages without power supply are easy to find though the government says there are none. The lines are laid, but many villagers are too poor to pay for electricity. BPL (below poverty line) families, entitled to free supply, are waived the installation charge. But they don’t have money to wire their

Vande Bharat halts midway near Tundla

In a major embarrassment to the railways, the much touted Vande Bharat Express developed a technical snag at Chamraula, 15 kms from Tundla junction.   Prime Minister Narendra Modi flagged off the train on Friday from New Delhi station.    The train was

PM flags off India’s first semi high-speed train

Indian Railways entered a new era as prime minister Narendra Modi on Friday flagged off the country’s first semi high-speed train, Vande Bharat Express, from the New Delhi railway station. The new train is also seen as a success story of the NDA government’s ‘Make in India’

Estonia eyes on more e-Residents from India to open startups

Riho Kruuv, Ambassador of the Republic of Estonia talks to Vishwas Dass on key issues like the importance of e-Residency programme of the Government of Estonia and why Estonia is becoming a preferred investment destination for Indian startups and budding entrepreneurs. The Ambassador says Estonia offer

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter