Bharat 22 ETF NFO
Bharat 22 ETF NFO is a New Fund Offer (NFO) in the form of an Exchange Traded Fund (ETF) whose scheme objective is to invest the corpus in the companies comprising the ‘S&P BSE Bharat 22 Index’ in the same proportion as the said underlying Index.
The S&P BSE Bharat 22 Index is a product of AIPL. A joint venture among affiliates of BSE Limited (“BSE”) and S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by ICICI Prudential Asset Management Company Limited (“Licensee”). BHARAT 22 ETF (the ‘Scheme’) tracks the S&P BSE Bharat 22 Index (‘Index’) that comprises total of 22 stocks from the universe of Central Public Sector Enterprises (CPSEs), Public Sector Undertakings (PSUs) and companies with stakes held under SUUTI (Specified Undertaking of the Unit Trust of India).
Bharat 22 ETF Scheme Features
Bharat 22 (NFO) opens
|Anchor investors: November 14, 2017
Non-anchor investors: November 15 – 17, 2017
Bharat 22 Minimum Application Amount (from NFO)
Retirement Funds (RFs) – ₹10 crore and in multiples of ₹1/- thereafter
Qualified Institutional Buyers (QIBs) – ₹10crore and in multiples of ₹1/- thereafter
Retail Individual Investors (RIIs) – ₹ 5,000 (& in multiples of ₹ 1) up to ₹2 lacs
RFs– minimum amount of ₹2,00,001 (& in multiples of ₹1)
QIBs – minimum amount of ₹2,00,001 (& in multiples of ₹1)
Non- Institutional Investors (NIIs) – minimum amount of ₹2,00,001 (& in multiples of ₹1)
|Listing at||To be listed on BSE Ltd. and National Stock Exchange of India Ltd (NSE).|
|Benchmark||S&P BSE Bharat 22 Index|
|Fund Manager||Kayzad Eghlim|
Key Highlights of Bharat 22 ETF
- The stock level cap of around 15%.
- Sector level cap of around 20%.
- The index will be rebalanced annually.
- Rebalancing to be done annually in March.
- The weight of each individual stock in the Index is capped at 15% and each sector in the Index is capped at 20%.
- Govt. of India to make additions/deletions to/from the Index from time to time.
- The index was designed in consultation with the Government of India.
- Weights applied using the Free Float Market Capitalization Weighting Method.
Why to Invest in Bharat 22 ETF NFO?
- The portfolio comprises stocks of some of India’s largest public & private sector enterprises.
- Diversified exposure across 6 sectors – Basic materials, Energy, Finance, FMCG (Fast-Moving Consumer Goods), Industrials and Utilities.
- Discounts – The government has offered 3% discount during the New Fund Offer of the Scheme, which could add to your returns.
- Government Reforms and Initiatives – could boost the earnings growth potential of the underlying constituent of the Index.
How to Buy Bharat 22 ETF?
Bharat 22 can purchases directly from the ICICI Prudential Mutual AMC website or registered offices across India as well as various 3rd party securities market intermediaries who currently handle mutual funds managed by ICICI Prudential Mutual Fund AMC or call your financial advisor.