ETFs have their own advantage in respect of taxation and track the underlying asset such as gold or some companies as in this case 22 companies which are mostly public sector or public sector stake in private companies through SUUTI. The divestment plan for the government through Bharat 22 ETF is expected to reap good returns for investors in line with the previous government backed CPSE ETF.
For the retail investors the subscription for the Bharat 22 ETF NFO opened on November 14 and today is the last day to lock in your funds in the lucrative offer which provides you yield higher than benchmark indices as well as beat inflation.
The retail investor can invest in the ETF similar to a mutual fund during the NFO period or additional offering period.
Brokers can be tapped in for the issue or the direct approach to ICICI Prudential AMC can be approached for subscription. Through the stock market or brokers route, investors are allowed to subscribe for one unit or multiples of 1 unit.
The allocation in the underlying diversified in S&P BSE Bharat 22 ETF shall be done on an annual basis in March and is expected to yield decent returns for investors in the long run.