New Exchange Traded Fund announced -Governance Now

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

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Let us pledge to do what we can for environment: President

President Droupadi Murmu on Monday morning spent some time at the sea beach of the holy city of Puri, a day after participating in the annual Rath Yatra. Later she penned her thoughts about the experience of being in close commune with nature. In a message posted on X, she said: