Contact Your Financial Adviser Money Making MC
9
November 2017
 |
Bharat
22-ETF (The Total Investment &
Insurance Solutions)
Bharat 22-ETF is the second ETF (exchange
traded fund) launched by the finance ministry after the CPSE (Central Public
Sector Enterprises) ETF. The government plans to raise Rs8,000 crore from the
new ETF to meet its ambitious Rs72,500-crore disinvestment target for the
current fiscal. ETFs are passively managed funds, which give exposure to a
well-diversified portfolio of stocks similar to mutual funds, but with the
exception that ETFs can be traded like shares on a recognised stock exchange
and have a very low expense ratio. The ETF will comprise 22 companies: The Total Investment & Insurance
Solutions
Public Sector Units: SBI (8.6%), ONGC (5.3%), IOCL (4.4%), BPCL (4.4%), NALCO
(4.4%), Coal India (3.3%), Bank of Baroda (1.4%) and Indian Bank (0.2%).
Central Public Sector Units: PGCIL (7.9%), NTPC (6.7%), GAIL (3.7%), Bharat
Electronics (3.3%), Engineers India (1.5%), NHPC (1.2%), NBCC (0.6%), NLC India
(0.3%) and SJVNL (0.2%). The Total
Investment & Insurance Solutions
Strategic Holdings of the Government: Larsen & Toubro (17.1%), ITC (15.2%) and Axis
Bank (7.7%). The Total Investment &
Insurance Solutions
Shares of L&T, ITC and SBI aggregate 40%
of the ETF’s portfolio; any sharp variation in their prices will affect the
ETF’s prices to some degree.
ICICI Prudential Mutual Fund will manage
Bharat 22-ETF. Subscription for retail investors would open on 15th November
and continue till 17th November. An upfront discount of 3% would be offered to
all categories of investors.
Minimum investment in the public offer of the
ETF is Rs5,000 and one requires a trading and demat account to purchase these
units. There is no exit-load.The Total
Investment & Insurance Solutions
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