All you wanted to know about Bharat 22 ETF NFO

Bharat 22 ETF NFO

Bharat 22 ETF Fund Launch Date, Price Details,Nav, How to BuyBharat 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)

Anchor investors:

Retirement Funds (RFs) – ₹10 crore and in multiples of ₹1/- thereafter

Qualified Institutional Buyers (QIBs) – ₹10crore and in multiples of ₹1/- thereafter

Non-anchor investors:

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)

 Entry Load  Nil
 Exit Load   Nil
 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?

  1. The portfolio comprises stocks of some of India’s largest public & private sector enterprises.
  2. Diversified exposure across 6 sectors – Basic materials, Energy, Finance, FMCG (Fast-Moving Consumer Goods), Industrials and Utilities.
  3. Discounts – The government has offered 3% discount during the New Fund Offer of the Scheme, which could add to your returns.
  4. 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.

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1 COMMENT

  1. 10 Points about Bharat 22 ETF opens on 14 Nov; Government likely to collect Rs 8,000 Crore

    Bharat 22 ETF was opened for Anchor Investors on 14 November 2017.For Retail investors it will be open on 15 November,2017 and close on 17 November,2017.Throught this scheme Government of India is planning to raise an amount of Rs 8,000 crore. This Bharat 22 ETF is being managed by ICICI Prudential AMC.

    10 Points about Bharat 22 ETF opens on 14 Nov:

    1. This Exchange Trading Fund (ETF) is suitable for those investors who are seeking
    • Long term wealth creation.
    • An Exchange Traded Fund that aims to provide returns that closely correspond to the returns provided by S&P BSE Bharat 22 Index, subject to tracking error.

    2. This ETF is a part of government’s overall disinvestment programme, which has set a target of realising Rs 72,500 crore this fiscal.

    3. This ETF is a collection of diversified portfolio of 22 bluechips, where it is open for Anchor investors on 14 November,2017 and close on same day.

    4. This ETF will be open for retail investor on 15 November, 2017 and close on 17 November, 2017.

    5. Minimum Amount for Application/Subscription

    Anchor Investors:
    Anchor Investors can invest with the minimum application amount of Rs. 10,00,00,000 (Rupees Ten Crores only) and in multiples of Re. 1 thereafter.
    Retail Individual Investors:
    Investors in this category can invest with the minimum investment amount of Rs. 5,000 and in multiples of Re.1 thereafter, subject to maximum investment amount of Rs. 2,00,000 (Rupees Two Lakhs Only).
    Retirement Funds:
    Investors in this category can invest with a minimum investment amount of Rs. 200,001 (Rupees Two Lakhs and One Only) and in multiples of Re. 1 thereafter.
    QIBs:
    Investors in this category can invest with a minimum investment amount of Rs. 200,001 (Rupees Two Lakhs and One Only) and in multiples of Re. 1 thereafter.
    Non Institutional Investors:
    Investors in this category can invest with a minimum investment amount of Rs. 200,001 (Rupees Two Lakhs and One Only) and in multiples of Re. 1 thereafter.

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