AMN / New Delhi
Finance Minister Arun Jaitley today announced a new Exchange Traded Fund (ETF) named BHARAT -22 which consists of 22 scrips including ONGC, IOC, SBI and Axis Bank.
ICICI Prudential AMC will be the ETF Manager and Asia Index Private Limited will be the Index Provider. The index will be rebalanced annually.
ETF functions like a mutual fund scheme and is bought by investors as units.
Talking to media persons here , Finance Minister Arun Jaitley said, Bharat-22 will have a diversified portfolio of six sectors, including energy, FMCG, finance, basic material and industrial and utilities.
He said, ETF investment is less risky and provides liquid assets which are traded real time and is a transparent mode of investment.
The government had raised about eight thousand 500 crore rupees through the three tranches of CPSE Exchange Traded Fund last fiscal. In his Budget Speech, Mr Jaitley had promised to use ETF as a vehicle for further disinvestment of shares.
The target for central public sector enterprises disinvestment in 2017-18 was set at 72,500 crore rupees. During the current Financial Year, the government has realised approx 9,300 crore rupees through nine disinvestment transactions so far.