Bharat 22 Index ETF is another stake sale being planned and approved by the government and it is tentatively being referred to as Bharat 22 Index ETF. More clarity shall be made after its launch in the next month. ICICI Prudential AMC is manager of the ETF and upon approval by the SEBI, the company will launch the scheme.
B22E In Detail
The ETF shall invest the entire corpus in all of the stocks that include both public as well as private sector companies and in proportion that constitutes the index devised for the purpose, S&P BSE Bharat 22 index. Interesting the proportion allotted to a scrip in the new ETF is 15% while for a sector is 20%.
Also, through the ETF, government is planning a stake-sale in three private entities namely, Axis Bank Ltd, ITC Ltd. and Larsen & Toubro Ltd.
The expense ratio of the B22E is said to be one basis points.
Through the stake sale, government wants to raise funds for its various infra projects together with different welfare programmes.
How good is the offer for a retail investor?
Bharat 22 Index ETF is supposedly not a good bet for retail investor as it is concentrated in respect of the stocks. Also, not much can be stated before its final launch. So it is better you as a potential investor adopt a wait and watch outlook on the new scheme.