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The Union Finance Minister Shri Arun Jaitley announced a new Exchange Traded Fund (ETF) by the name BHARAT 22.
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Bharat 22 consists of 22 stocks of CPSE’s, PSB’s & strategic holding of SUUTI .
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Compared to energy heavy CPSE ETF, Bharat 22 is a well diversified portfolio with 6 sectors (Basic Materials, Energy, Finance, FMCG, Industrials & Utilities).
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The Bharat 22 Index will be rebalanced annually. ICICI Prudential AMC will be the ETF Manager and Asia Index Private Limited (JV BSE and S& P Global) will be the Index Provider.
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In the Budget Speech of 2017-18, the Finance Minister Shri Arun Jaitley had promised to use ETF as a vehicle for further disinvestment of shares.
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The target for CPSE’s disinvestment in 2017-18 was set at INR 72,500 crore. During the current Financial Year 2017-18, the Government has realised approx INR 9,300 crore through nine disinvestment transactions so far.
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Globally ETF Assets have grown significantly.
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Globally today there are 4 trillion dollar worth Assets Under Management (AUM).
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These are expected to touch $7 trillion by 2021.
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Large Investors (Sovereign/Pension Funds) prefer investing in ETFs due to the benefits of ETF being Low cost & Less risky; being Highly Liquid assets; Transparent Investment and that these can be traded at Real Time Market Price.
Source:TH
