India
NRI
CPSE ETF
What is a CPSE ETF
An ETF is an equity instrument that tracks an index and can be traded on a Stock Exchange. This CPSE ETF is made up of equity investments in 11 of India’s largest public sector companies. The CPSE ETFs are open-ended funds with no lock-in. They can be bought and sold on a Stock Market.
About CPSE ETF FOF3
The latest Further Fund Offer(FFO) is the 3rd in the series of CPSE ETFs. The FFO will be open for subscription for retail investors on November 28th & close on November 30th 2018. After the FFO is closed for subscription, units of the FFO will be listed on the Stock Exchanges.
One major advantage of investing in the FFO will be that investors will get a 4.5% discount on the market price of the underlying securities of the ETF. When the units are listed on Stock Exchange, you will have to pay close to the market price if you want to invest in the ETF.
FEATURES
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Minimum subscription Rs 5,000.
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Upfront Discount - 4.5%. Earlier CPSE ETF had 3.5% discount
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Entry & Exit Load is NIL.
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Maximum cap per stock is reduced from 25% to 20% in this CPSE ETF.
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ETF would get listed on Stock Exchanges.
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Government of India aims to get Rs 8,000 Crs from this issue
WHY TO INVEST
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Good for long term investors
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Dividend Yield of this Portfolio is of 5.25% as on 31st October, 2018
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CPSE ETF has a low expense ratio of 0.95 bps.
PORTFOLIO COMPOSITION
| POWER | NTPC, NLC INDIA Ltd and SJVN Ltd |
| MINING | Coal India Limited |
| PETROLEUM PRODUCTS | Indian Oil Corporation Ltd |
| OIL | ONGC and Oil India Limited |
| FINANCE | REC Limited and Power Finance Corporation Limited |
| CAPITAL GOODS | Bharat Electronics Limited |
| CONSTRUCTION | NBCC (India) Ltd |
STEPS
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Step 1
Log in to your AxisDirect account & click on mutual fund
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Step 2
Click on NFO/FMP
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Step 3
Select Reliance AMC
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Step 4
Under scheme name type CPSE. Submit & apply.