All Set For Bharat 22

 

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After the stupendous success of the CPSE ETF, which is nothing but an exchange-traded fund mirroring select central public sector enterprises, the government has announced the launch of Bharat 22 ETF, which will be managed by ICICI Prudential Mutual Fund. An ETF (exchange-traded fund) pools money from investors and channels into a basket of stocks, mirroring an index and its performance. And, the government is planning to pare its stake in these companies.

The Bharat 22 ETF will span six sectors—basic materials, energy, finance, FMCG, industrials and utilities. Besides public sector banks, miners, construction companies, and energy majors, the ETF will also include some of the government’s holdings in SUUTI (Specified Undertaking of Unit Trust of India). In fact, the SUUTI heavyweights (L&T, ITC and Axis Bank) have a 40 percent weight on the index.