CPSE ETF is attractive, but don't invest over 10% of portfolio: Experts

You can have a limited exposure of 10% and stay invested for two-three years

The fifth installment of the Central Public Sector Enterprises exchange-traded fund (CPSE ETF) will open for subscription on Wednesday for retail investors. To sweeten the deal for retail investors, the issue will be offered at a 4 per cent discount.

The offer comes at a time when public sector units that are part of the ETF are available at attractive valuations, according to investment experts. “Apart from the 4 per cent discount, the dividend yields of CPSE stocks are around 5.52 per cent,” says Vishal Jain, head, ETF and fund manager, Reliance Mutual Fund.

The CPSE ETF comprises 11 stocks, of which