The Finance Minister, Arun Jaitely, announced in August the creation of a new ETF – the Bharat 22 ETF. This was announced as a way for the government to divest some of its equity holdings and raise capital for its undertakings. This is the second ETF that has been announced by the government, the first being the CPSE ETF.
Let’s first look at what is an ETF.
What’s an ETF?
An ETF, or exchange-traded fund, is a marketable security that tracks 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. Source: Investopedia
What is the Bharat 22 ETF?
The Bharat 22 ETF is a diversified basket of stocks of large bluechip companies, from both the public and private sector. This ETF will invest in stocks in the S&P BSE Bharat 22 index.
As the name suggests, the index comprises of stocks from 22 companies, spread across 6 sectors that include FMCG, finance, industrials, energy, minerals and utilities. C ompanies from the private sector include Larsen & Toubro Ltd, ITC and Axis Bank.
What the product features of Bharat 22 ETF are, are yet to be released and will be available once the ETF is cleared by SEBI.
Stay tuned for more updates!