BHARAT-22 Exchange Traded Fund (ETF) Targets Initial Amount of Rs.8,000 Crore (Download PDF)

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BHARAT-22 is and Exchange Traded Fund to benefit long term and retail investors by providing an opportunity of participation in equity stocks of the Government run companies and earn stable returns. Following are its important aspects.

Image of Bharat - 22

Image of Bharat - 22

Image of Bharat - 22

  • Managed by ICICI Prudential Mutual Fund

  • Targets an initial amount of about Rs. 8,000 crore.

Purpose of BHARAT-22

  • Through this instrument, the Government of India is divesting multiple stocks spread across various sectors in one bundled instrument reducing over hang on individual stocks and maximizing sale proceed.

  • Expected to benefit long term and retail investors by providing an opportunity of participation in equity stocks of the Government run companies and earn stable returns.

S&P BSE BHARAT-22 INDEX

  • The strength of this ETF is in the specially created Index S&P BSE BHARAT-22 INDEX which is a unique blend of shares of key CPSEs, Public Sector Banks (PSBs) and also the Government owned shares in blue chip private companies like Larsen & Tubro (L&T), Axis Bank and ITC.

  • The shares of the Government companies represent 6 core sectors of the economy - Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials making the Index broad-based and diversified.

  • The Sector and Stock exposure limits help risk management and reduction of concentration, providing stability to the Index.

  • The Index includes leading Maharatanas and Navratanas such as Coal India, GAIL, Power Grid Corporation of India Ltd. (PGCIL), National Thermal Power Corporation (NTPC), Indian Oil Corporation Ltd. , Oil & Natural Gas Corporation (ONGC), Bharat Petroleum, and National Aluminum Company (NALCO), three Public Sector Banks such as SBI, Bank of Baroda apart from the 3 private sector companies.

What Are ETFs?

  • An ETF, or exchange-traded fund, is marketable security tracking an index, a commodity, bonds, or a basket of assets like an index fund.

  • Unlike mutual funds, an ETF trades like a common stock on a stock exchange.

  • ETFs experience price changes throughout the day as they are bought and sold.

  • ETFs typically have higher daily liquidity and lower fees than mutual fund

  • Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day

- Published/Last Modified on: November 20, 2017

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