Reliance CPSE ETF FFO: Where will your money be invested - Indian IPO Blog

Wednesday, January 18, 2017

Reliance CPSE ETF FFO: Where will your money be invested

Reliance CPSE ETF FFO has opened for subscription.  Here is a look at in which areas your money would be parked if you choose to invest in this one if its kind Mutual Fund Exchange Traded Fund

The fund will primarily invest into stocks, which are the constituents of NIFTY CPSE Index, in the same proportion as the Index.

The stocks included in this index must fulfill the following parameters. 
- Be a part of the list of CPSEs published by the Department of Public Enterprise.
- Be Listed at National Stock Exchange of India Ltd (NSE)
- Have more than 55% Government Holding under promoter category.
- Have an average Free Float market capitalization of more than INR 1000 crore for six month period ending June 2013
- Have paid dividend of not less than 4% including bonus for the seven years immediately preceding or for at least seven out of the eight or nine years immediately preceding

The index has ten stocks as its components:
- Coal India
- Indian Oil
- Bharat Electronics
- Oil India
- Container Corp
- Engineers India.
While ETFs are MFs, they are bought and sold on stock exchanges like mutual funds. An investor who wants to invest in this basket of public sector stocks can therefore buy this ETF instead

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