Sources said the offer saw strong response from retail investors, HNIs and NRIs
Fund could later look at instruments rated below the top-grade, if there is demand
This ETF is an initiative of the department of investment and public asset management and the latter has given the mandate to Edelweiss AMC to design and manage the product
Fund to be launched in two series with greenshoe option on Thursday
In a Q&A, Radhika Gupta explains the finer points about investing in India's first debt ETF, which is likely to be launched next week
On the equity side, experts say investors may increasingly prefer ETFs over actively large-cap schemes
The budget target for disinvestment during 2019-20 has been set at Rs 1,05,000 crore and the government has so far raised Rs 17,364.26 crore
At present, while there are several options for investors looking to put their money in gold, those investing in the white metal can only buy physical silver
Assets under management (AUM) of India-dedicated funds have slid by about a fifth in the past year
The government plans to raise up to Rs 10,000 crore from this tranche of the CPSE ETF, which tracks shares of 11 Central Public Sector Enterprises (CPSEs).
The CPSE ETF FFO will be open for retail subscription on Friday. The Centre is looking to mobilise up to Rs 10,000 crore through the latest FFO
The government aims to raise a record Rs 1.05 trillion through disinvestment in 2019-20, up from Rs 85,000 crore raised last fiscal
The govt will also appoint an Asset Management Company (AMC) to act as the ETF provider and a legal advisor for the proposed ETF
Investors also added the most since September to the $1.5 billion WisdomTree India Earnings Fund, or EPI, in the period through Friday
The central public sector enterprises that are part of the ETF include ONGC, IOC, SBI, BPCL, Coal India and Nalco
Emerging market ETFs see inflows of $6.5 billion in the last one month
Unlike other recent ETFs such as the CPSE ETF or Bharat 22-ETF, proceeds from the debt ETF will not directly flow into the government's kitty
Shrinking asset base suggests only a few investors come for the long haul
Valued for their simplicity, exchange-traded funds pose worrying risks
The assets of exchange traded funds (ETFs) have quadrupled in the past two years, on the back of steady inflow from the Employees Provident Fund Organisation (EPFO). ETFs are traded on stock exchanges, with stocks, bonds or commodities as the underlying product. An ETF's portfolio exactly mimics the securities in its underlying index, in the same weightage. EPFO had entered the stock market in August 2015. The decision was to invest up to five per cent of its investible deposits; this was raised in 2016 to 10 per cent and then in 2017 to 15 per cent. The body had an estimated Rs 440 billion invested in the stock market this January. EPFO has invested the remaining portion in debt market instruments such as government securities and bank fixed deposits. ETF schemes run by SBI Mutual Fund and UTI MF have cornered most of the EPFO inflow; the former got three-fourth, it is estimated. Experts believe interest in the ETF space is likely to increase as liquidity improves and participation .