Reliance MF's CPSE ETF to open on March 14; to raise Rs 2,500-cr

The third tranche of CPSE Exchange Traded Fund (ETF), managed by Reliance Mutual Fund will open for retail investors on March 15 and will continue till March 17. Through this tranche the government aims to garner about Rs2,500 crore. In this series, an upfront discount of 3.5% will be offered to all category of investors. In the earlier two series a 5% discount was offered only to retail investors. The second tranche of the CPSE ETF launched in January 2017, which was oversubscribed by 3 times.

CPSE ETF, comprises scrips of 10 PSUs namely ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India. Retail investors can invest with a minimum of Rs 5,000.

The government had raised Rs6,000 crore through the second tranche of CPSE ETF in January and Rs3,000 crore from first tranche in March 2014. ETFs primarily score over actively managed funds as they have a low expense ratio. This fund has an expense ratio of 6.5 basis points only. Over the last one year, the CPSE ETF has given a return of 44.80%.


CPSE ETF was originally managed by Goldman Sachs MF, which was acquired by Reliance MF in October 2015. Subsequently the finance ministry gave its nod for the transfer of management of CPSE ETF to Reliance Mutual Fund.