ETFs are passive investing vehicles that track an index or basket of securities
New Delhi, 15 May The finance ministry's department of investment and public asset management (Dipam) is close to finalising the constituents of a second exchange traded fund (ETF). ICICI Muutal Fund will manage this second ETF fund. The first one was launched in March 2014 and is managed by Reliance MF. It has garnered Rs 11,500 crore for the exchequer, in three tranches. While the first ETF constituted exclusively of shares of state-owned companies, the second one, says sources, could comprise shares of at least two of three private companies in which the government holds a stake through Specified Undertaking of the Unit Trust of India . These are Axis Bank, Larsen & Toubro and ITC. Hindustan Zinc is another private entity in which the Centre holds a stake; part of that is likely to form the ETF basket as well,"The basket could also comprise listed state-owned banks and other financial institutions," a senior official said.Dipam has issued a Request for Proposal (RfP) for ...
AUM of ETFs tracking Nifty indices accounts for 85 per cent of the total equity ETF AUM
Market players say this will make the ETF more attractive as the exposure would get diversified
With the ETF giving exceptional returns in the past year, buy more in a staggered manner
Doubles assets to $4 billion from $1.9 billion in three years
SBI Fund Management had crossed Rs 20,000-crore mark of ETF assets under management
ETFs are group of securities that are traded like individual stocks on an exchange
Start small, and if the idea generates returns, one can step up investment later
Those with investment horizon of 3 years may wait for turnaround, while those looking to cut losses should move to a diversified equity fund