It sets S&P BSE BHARAT0-22 Index

India has launched the BHARAT-22 Exchange Traded Fund (ETF) managed by ICICI Prudential Mutual Fund targeting an initial amount of about Rs.8,000 Crore.

The Fund is expected to benefit long term and retail investors by providing an opportunity to participate in equity stocks of the Government run companies.

The Units of the Scheme will be allotted 25% to each category of investors.

Retirement Fund has been made separate category of Investors in the ETF.

In case of spill-over, additional portion will be allocated giving preference to retail and retirement funds.

There is a 3% discount across the board.

The strength of this ETF lies in the specially created Index S&P BSE BHARAT-22 INDEX, covering state owned or linked companies.

The Index constituents include Coal India, GAIL, Power Grid Corporation of India Ltd, National Thermal Power Corporation (NTPC), Indian Oil Corporation Ltd, Oil & Natural Gas Corporation (ONGC), Bharat Petroleum, and National Aluminum Company (NALCO), as well as SBI and Bank of Baroda among others.

The shares of the Government companies represent 6 core sectors of the economy – Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials.

This combination makes the Index broad-based and diversified.

The Sector and Stock exposure limits help in risk management and reduction of concentration, providing stability to the Index. The strength of the Index has been demonstrated in its performance from the time of its launch in August 2017 wherein it has out-performed the NIFTY-50 and Sensex. fii-news.com