Bharat-22 ETF could generate good returns

The government will be happy since the Rs 14,500 crore it received will go towards the disinvestment target of Rs 72,500 crore for 2017-18

The Bharat-22 ETF (Exchange Traded Fund) has received a strong response from investors. Overall, there was around four times over-subscription and about 1.5 times subscription in the retail segment. The sector mix offers coverage across major industries (weightage of 22.52 per cent), utilities (20.63 per cent), finance (18.67 per cent), energy (18 per cent), FMCG (14.26 per cent), and basic materials (5.13 per cent).

The stocks include 22 large companies, mostly PSUs such as State Bank of India (SBI), ONGC, Indian Oil Corporation, PFC, PGCIL (PowerGrid), Nalco, BPCL, NTPC and Bank of Baroda. It also includes government holdings in Axis