ICICI Prudential AMC has launched Bharat 22 ETF, an open-ended exchange traded fund, that will invest in S&P BSE BHARAT 22 index. The ETF is a part of government's Rs 72,500-crore disinvestment program. The ETF aims to bring Rs 8,000 crore to the government.
NFO window is open for anchor investor from today. It will be open to retail investors from tomorrow.
Where will the ETF invest? The fund aims to replicate the S&P BSE Bharat 22 Index, which will invest in 22 stocks in CPSE universe, stakes held under the Specified Undertaking of the Unit Trust of India (SUUTI) and Public Sector Banks (PSBs), mostly largecap companies across six sectors.
Currently, the index comprise large companies like ITC Ltd, Indian Oil Corp Ltd, Larsen & Toubro Ltd, SBI and so on. The portfolio of ETF will be rebalanced annually in March.
What does it offer? The NFO is offering a discount of 3 per cent to all categories of investors. Unlike actively managed funds, it has a very low expense ratio of up to 1 bps (1 bps=0.001 per cent). The AMC claims it to be the lowest expense ratio in India ETF universe.
The S&P BSE Bharat 22 Index holds mostly large and stable stocks, which reflects in its return. The index has beaten benchmark indices like Sensex (See table below).
Should you invest? Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company, says the ETF is an attractive opportunity for long term investors. We believe the ETF offers an attractive long term investment opportunity to partake in the India growth story by way of a diversified blend of companies spread across several sectors and are available at attractive valuation and a good subscription discount
It is a diversified portfolio for the long term. The 3% discount makes it slightly attractive for investors. Investors looking at diversified, low cost options to invest in, large cap companies with a good dividend paying track record can consider this fund. One needs to have a demat account to invest in this
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Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...
1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...
Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) UTI Equity Fund Invest Online UTI Equity is a large cap-oriented fund with assets under management worth Rs. 2,269 crore (as on June 30, 2013). The fund was originally launched in May 1992 as UTI Mastergain and is benchmarked against S&P BSE 100. A couple of years back the name of the fund was changed to UTI Equity Fund and many of the smaller funds of UTI were merged into this fund. Performance The fund has outperformed its benchmark as well as the equity diversified category average in the last one-, three- and five-year periods. It has repeated the same in 2013 (as on May 31). Since its inception the fund has delivered an impressive 26 per cent compounded annual growth rate which is superior to its benchmark performance in the same period. Y...
Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...
