Nippon Life AMC to launch CPSE ETF FFO 6

Nippon Life AMC is coming with a further fund offer of CPSE ETF, an open ended index scheme listed on the exchange in the form of an exchange traded fund (ETF), which tracks the Nifty CPSE Index.

This will be the seventh tranche of the CPSE ETF.

The FFO will open for a day on January 30 for anchor investors and January 31 for non-anchor investors. Non anchor investors include retail individual investors, QIPs and non-institutional investors.


The ETF will invest in bluechip Maharatna, Navaratna & Miniratna CPSE stocks including Bharat Electronics Ltd, Coal India, NBCC (India), NCL India, NTPC, Oil India Ltd, ONGC, SJVN Ltd, Cochin Shipyard, NHPC, NMDC and Power Grid Corporation of India.

The scheme will be managed by Vishal Jain.

Investors across categories can avail a discount of 3% on the ‘FFO 6 Reference Market Price’ of the underlying shares of Nifty CPSE Index.

Minimum application amount for different investors will be as below:

	Minimum application amount during FFO 6
Retail Individual Investor	Minimum amount of Rs.5,000 and in multiples of Re 1/- thereafter
Non Institutional Investors / QIB	Minimum amount of Rs.2,00,001 and in multiples of Re 1/- thereafter
For Anchor Investor	Minimum amount of Rs.10 Crores and in multiples of Re 1/- thereafter

The issue will have a very low expense ratio of 0.0095%. It also allows trading on real time basis.

The NFO of CPSE ETF was launched in March 2014. The NFO collected Rs 4,363 crore, out of which Rs 1,363 crore was refunded to investors due to limited issue size of Rs 3,000 crore.