CPSE ETF: Book profits slowly and don't try to maximise gains, say experts

New investors are better off picking diversified offerings

The central public sector enterprise (CPSE) exchange-traded fund (ETF) has fetched a return of 35.1 per cent over the past year, handily beating the 10.12 per cent gain registered by the Nifty 50 Total Returns Index (TRI). However, investors should not rush to invest in this ETF, based on its recent performance. Instead, they should evaluate its longer-term track record.

Asset owners driving performance

To understand why the ETF has outperformed over the past year, examine its constituents.

Its largest holdings include NTPC (22.2 per cent), Power Grid Corporation (20.5 per cent), Oil and Natural Gas Corporation (17.4 per cent), Coal India (13.9