Mutual fund investors can expect more Exchange Traded Funds (ETFs) along the lines of Bharat 22 ETF, in the coming year. "The Government introduced Exchange Traded Fund Bharat-22 to raise Rs 14,500 crore, which was oversubscribed in all segments. DIPAM will come up with more ETF offers, including debt ETF," the finance minister said in his budget speech.
Bharat 22 ETF comprised of 22 stocks of Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSB) and strategic holdings of the Unit Trust of India. It allowed investors an exposure to six sectors- Basic materials, Energy, Finance, FMCG, Industrial and Utilities. This ETF was launched to aid government help in its divestment programme of Rs 72,500 crore in 2017-18. The issue was a great success and helped government raise Rs 14,500 crore. The ETF tracks S&P Bharat 22 Index.
