Bharat 22 ETF looking to go global
ICICI Prudential Mutual Fund has been mandated to look for international exchange listing.
By ETMarkets.com | Updated:
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NEW DELHI: Bharat 22 ETF is looking to make a debut on international stock exchanges.
The government may look at Hong Kong, London, Singapore and the US exchanges for Bharat 22 ETF's global launch, ET Now reported on Monday.
Bharat 22 ETF got listed on the domestic bourses last week.
The fund, managed by ICICI Prudential Mutual Fund, is a unique blend of shares of key CPSEs, public sector banks (PSBs) and also the government-owned shares in bluechip private companies like Larsen & Toubro (L&T), Axis Bank and ITC.
According to ET Now, ICICI Prudential Mutual Fund has been mandated to look for international exchange listing. The government will not dilute stake in any company post overseas listing, the report added.
In Bharat 22 ETF, weightage of each individual stock in the ETF is capped at 15 per cent and that of each sector at 20 per cent. The ETF includes frontline stocks such as SBI, IOC, Nalco, ONGC, BPCL, NTPC and Bank of Baroda. Besides, it also constituted SUUTI shares in listed companies such as ITC, Larsen & Toubro and Axis Bank.
ETFs trade on the stock exchange platform like a single stock. ETFs follow a constant portfolio strategy and are linked to an established index, which is why these mutual funds have lower management fee. Also, there is no exit load for units sold through the secondary market on the stock exchanges.
However, brokerages charge a fee on transactions done through them. Redemption of ETF units can also be done directly with the fund.
The government may look at Hong Kong, London, Singapore and the US exchanges for Bharat 22 ETF's global launch, ET Now reported on Monday.
Bharat 22 ETF got listed on the domestic bourses last week.
The fund, managed by ICICI Prudential Mutual Fund, is a unique blend of shares of key CPSEs, public sector banks (PSBs) and also the government-owned shares in bluechip private companies like Larsen & Toubro (L&T), Axis Bank and ITC.
According to ET Now, ICICI Prudential Mutual Fund has been mandated to look for international exchange listing. The government will not dilute stake in any company post overseas listing, the report added.
In Bharat 22 ETF, weightage of each individual stock in the ETF is capped at 15 per cent and that of each sector at 20 per cent. The ETF includes frontline stocks such as SBI, IOC, Nalco, ONGC, BPCL, NTPC and Bank of Baroda. Besides, it also constituted SUUTI shares in listed companies such as ITC, Larsen & Toubro and Axis Bank.
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ETFs trade on the stock exchange platform like a single stock. ETFs follow a constant portfolio strategy and are linked to an established index, which is why these mutual funds have lower management fee. Also, there is no exit load for units sold through the secondary market on the stock exchanges.
However, brokerages charge a fee on transactions done through them. Redemption of ETF units can also be done directly with the fund.
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