Bharat 22 ETF: Overview
Bharat 22 ETF is an exchange traded fund (ETF) which is scheduled for launch in November 2017. This new ETF will closely track the performance of the Bharat 22 Index, which comprises 22 leading publicly traded domestic companies. The Bharat 22 ETF has a well diversified portfolio that includes six core sectors, including industrials, finance, utilities, energy, FMCG and basic materials, and offers good investment opportunity. This ETF is being managed by ICICI Prudential AMC, comprises select companies from the private sector having an exposure to the extent of 39 per cent while the rest are public sector firms.
About Exchange Traded Funds
Exchange Traded Funds are defined as marketable securities that track a specific commodity, bonds, index or a combination of assets such as index fund. ETFs can be traded on stock markets similar to shares thus ETF units witness price change in real time. On the other hand, unlike shares which represent investment in a specific company, an index ETF such as Bharat 22 Index ETF offers superior diversification. In many ways, an ETF combines the real time trading benefits of shares with the diversification benefit of mutual funds. Some of the key trading features supported by an ETF include:
- Provides intra-day trading option
- Allows limit order and stop order trades
- May be used as collateral similar to securities (loan against securities)
- Allows trades using margin money
Expected Equity Holdings of Bharat 22 ETF
The following are the expected equity holdings of the Bharat 22 ETF based on the weights assigned to individual securities featured on the Bharat 22 Index*.
|
Security Name |
Sector |
Organisation Type |
% Assets (Based on Index Weight) |
|
Larsen & Toubro |
Industrials |
SUUTI A Group (Large Cap) |
17.10% |
|
ITC Ltd. |
FMCG |
SUUTI A Group (Large Cap) |
15.23% |
|
State Bank of India |
Finance |
PSU Bank (Large Cap) |
8.64% |
|
Power Grid Corp. Of India |
Utilities |
Navratna (Large Cap) |
7.92% |
|
Axis Bank Ltd. |
Finance |
SUUTI Group A (Large Cap) |
7.71% |
|
NTPC Ltd |
Utilities |
Maharatna (Large Cap) |
6.71% |
|
Oil & Natural Gas Corp Ltd |
Energy |
Maharatna (Large Cap) |
5.32% |
|
Indian Oil Corp Ltd |
Energy |
Maharatna (Large Cap) |
4.45% |
|
National Aluminium Co. Ltd |
Basic Materials |
Navratna (Mid Cap) |
4.43% |
|
Bharat Petroleum Corp Ltd |
Energy |
Navratna (Large Cap) |
4.38% |
|
Gail India Ltd |
Utilities |
Maharatna (Large Cap) |
3.70% |
|
Bharat Electronics Ltd |
Industrials |
Navratna (Mid Cap) |
3.35% |
|
Coal India Ltd |
Energy |
Maharatna (Large Cap) |
3.31% |
|
Engineers India Ltd |
Industrials |
Navratna (Large Cap) |
1.48% |
|
Bank of Baroda |
Finance |
PSU Bank (Large Cap) |
1.42% |
|
Rural Electrification Corp Ltd |
Finance |
Navratna (Large Cap) |
1.31% |
|
NHPC Ltd |
Utilities |
Miniratna-I (Large Cap) |
1.17% |
|
Power Finance Corp Ltd |
Finance |
Navratna (Large Cap) |
0.98% |
|
NBCC (India) Ltd |
Industrials |
Navratna (Small Cap) |
0.64% |
|
NLC India Ltd |
Utilities |
Navratna (Mid Cap) |
0.28% |
|
Indian Bank |
Finance |
PSU Bank (Mid Cap) |
0.24% |
|
SJVN Ltd |
Utilities |
Miniratna-I (Mid Cap) |
0.23% |
*The above data is based on current information of the Bharat 22 Index as provided by Asia Index Pvt. Ltd. on 31st July 2017. The actual allocation of individual securities of the Bharat 22 Index ETF may be different based on market conditions and other fund-specific considerations.
Issue Details
Scheme name: BHARAT 22 ETF
Investment Manager: ICICI Prudential Asset Management Company Limited
Face Value: Rs. 10
Minimum Application Amount (During NFO): Anchor Investors: RFs and QIBs – Rs. 10 crore and in multiples of Rs. 1 thereafter
Non-Anchor Investors: Retail – Rs. 5,000 and in multiples of Rs. 1 up to Rs. 2 lakh
Non Retail: Rs. 2, 00,001 and in multiples of Rs. 1 thereafter
ˆRFs, QIBs & NIIs
Fund manager: Mr. Kayzad Eghlim
Entry / Exit load: Nil
Liquidity: To be listed on BSE and NSE
Benchmark: S&P BSE Bharat 22 Index
Allocation: Anchor Investors: 25%
Non-Anchor Investors: RII – 25% RFs – 25% QIBs and NIIs – 25%
Download form
Download Sample Application Form : Bharat22ETF-Application Form-ARN-20669