15 Nov

BHARAT-22 Exchange Traded Fund

BHARAT-22 Exchange Traded Fund is launched by The Union Government on 14 November 2017.

The Union Government launched the BHARAT-22 Exchange Traded Fund (ETF). This will be managed by ICICI Prudential Mutual Fund with an initial amount of Rs 8000 crore.

QUICK BITES:
LAUNCHED BY : UNION GOVERNMENT OF INDIA
MANAGED BY : ICICI PUDENTIAL MUTUAL FUND
SERVED BY : MR. KAYZAD EGHLIM
FOR WHOM : LONG TERM INVESTORS

Highlights of BHARAT-22 Exchange Traded Fund are:
• In this ETF, the Retirement Fund has been made by separate category of Investors. ETF Investments are of highly liquid nature and can be trade on Stock Exchange like direct equity shares.

• In case of overflow of funds, additional portion will be allocated with preference to retail and retirement funds also there is a 3 per cent discount across the board.

• The strength of this fund lies in the S&P BSE BHARAT-22 INDEX, a specially created Index which includes shares of key CPSEs, Public Sector Banks 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 and thse are :Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials.

• The Sector and Stock exposure limits will help in risk management and will provide stability to this diversified Index.The Index invest a Maximum of 15% in single stock and 20% in a particular sector.

• The strength of the Index was earlier demonstrated in August 2017 in its performance wherein it has out-performed the NIFTY-50 and Sensex.

• Index constituents include leading Maharatanas and Navratanas such as Coal India, GAIL, Power Grid Corporation, NTPC, Indian Oil Corporation Ltd, ONGC, Bharat Petroleum and NALCO, three Public Sector Banks such as SBI apart from the 3 private sector companies L&T, Axis Bank and ITC.

• Moreover, Union Government’s key Economic Reforms may also benefit ETF. These reforms are Insolvency and Bankruptcy Code 2016, Digital Economy, Bank recapitalization, GST, Liberalization of FDI, Introduction of Daily Fuel pricing, Revival package for DISCOMs, etc.

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