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Bharat-22 Exchange Traded Fund (ETF)

Posted on : 27 Dec 2019

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  • ETFs hold a portfolio of securities that replicates an index and are listed and traded on the stock exchange and its trading value is based on the net asset value of the underlying stocks that it represents.
  • The return and risk on ETF are directly related to the underlying index like the BSE Sensex or asset like gold.
  • ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually.
  • ETFs also offer the individual investor a cost-effective approach to enhance portfolio diversification as it can cover indices, sectors, countries and asset classes.
  • The ETF is aimed at helping speed up the government’s disinvestment program.
  • CPSE ETF (1st ETF), which functions like a mutual fund scheme, comprises 10 PSUs - ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.

Bharat 22

  • Bharat 22 is the second Exchange Traded Fund (ETF) launched by the Union Finance Ministry (1st being CPSE ETF, launched in 2014).
  • It comprises of 22 stocks of Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSB) and strategic holdings of SUUTI (Specified Undertaking of the Unit Trust of India).
  • Compared to energy heavy CPSE ETF, Bharat 22 is a well-diversified portfolio with 6 sectors (Basic Materials, Energy, Finance, FMCG, and Industrials & Utilities). 
  • ICICI Prudential AMC will be the ETF Manager and Asia Index Private Limited (JV BSE and S&P Global) will be the Index Provider.

Article Related Questions

  1. Consider the following statements regarding the Bharat-22 Exchange Traded Fund (ETF)
    1.It is the first ETF launched by the government of India.
    2.It comprises of 22 stocks of Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSB) and strategic holdings of SUUTI (Specified Undertaking of the Unit Trust of India).
    3.It will be managed by ICICI Prudential AMC.
    Which of the above statements is/are correct?

  2. 1.2 only

    2.3 only

    3.2 and 3 only

    4.1, 2 and 3

    Right Ans : 2 and 3 only


  3. The 1857 Uprising was the culmination of the recurrent big and small local rebellions that occured in the preceding hundred years of British Rule. Elucidate (Answer in 150 words) - 2019 Mains


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