Upcoming Bharat 22 ETF

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Hello fellow investor...!!

At the outset, after the success of CPSE ETF launched in March 2014,  2nd edition in January 2017 followed by third in March 2017, PM Modi led Government is coming up with the new ETF. It is named as Bharat 22. Bharat 22 ETF was announced on Friday i.e. August 4, 2017. However, the official date of launch is not yet announced.

What is ETF? ETF is an Exchange Traded Fund. Investors are allotted units like Mutual Funds. As the name indicates, ETF units traded on the stock exchanges. So, after listing of ETF, an investor can liquidate the units in market. However, it is advisable to hold ETF for long term. Bharat 22 is a product for long term investors. Investor with aggressive profit booking strategy should avoid this ETF
Bharat 22 ETF will consist of 22 bluechip companies shares spread over different 6 sectors namely FMCG, Energy, Finance, Basic Materials, Industrial, and Utilities. The 22 companies are:
1. NACL (National Aluminium Company Limited)
2. ONGC (Oil and Natural Gas Company Limited)
3. IOC (Indian Oil Corporation)
4. BPCL (Bharat Petroleum Company Limited)
5. Coal India Ltd
6. State Bank Of India
7. Indian Bank
8. Bank of Baroda
9. Axis Bank
10. REC (Rural Electrification Corporation)
11. ITC limited
12. Larsen & Toubro limited
13. Bharat Electronics limited
14. Engineers India Limited
15. NBCC (India) Ltd
16. Power Grid Corporation of India Ltd
17. NTPC Ltd
18. Gail India Ltd
19. NHPC Ltd
20. NLC India Ltd
21. SJVN Ltd
22. Power Finance Corporation Limited.
These are Central Public Centre Enterprises, Public Sector Banks and some strategic holding in the Specified Undertaking of the Unit Trust Of India (SUUTI)

Government objective is to raise funds through disinvestment plan of Rs 72,500 crore in FY 2017-18. Bharat 22 will ensure to achieve the objective to some extent.

There are many ETFs in the market, however, Bharat 22 will be better and outperform as against others seeing PM Modi led Government's confidence in its Central and State run enterprises, and PSBs.

Investment in Bharat 22 is suitable for the investors with long term perspective. If you have the funds not required in near future or if you have funds available for long term investment plan, you should go for Bharat 22.

We have seen that CPSE ETF outperformed and gave return upto 22%. So, it is expected that Bharat 22 will not disappoint its investors.

This is my personal view. This product is subject to market risk. I invested 1.5 Lakh in CPSE ETF and it has given me a return much better than equity....Bhart 22 subscription response can be monitored and then 'Apply' is the strategy

Thank you for reading

Keep investing...keep earning...

Investment Bazaar
CA Prashant Seta

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