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Bharat 22 ETF Further Fund Offer
Why is it in the news ?
- The Further Fund Offer 2 (FFO 2) of Bharat 22 Exchange-Traded Fund (ETF), will open for subscription for anchor investors and non-anchor investors.
- FFO 2 is part of the government's divestment programme.
More in the news
- The ETF will be managed by ICICI Prudential Asset Management Company which intends to raise up to ₹2,000 crore.
- The fund allows investors to invest in a basket of government-owned and private sector entities like NTPC, Power Grid Corporation, ONGC, Axis Bank etc.
- The fund has the highest representation from industrials at 21.8%, followed by financials at 21.1%.
- About Exchange Traded Fund:
(1) An Exchange Traded Fund (ETF) is a type of fund that owns the underlying assets and is divided into different shares.
(2) It is a marketable security (in the form of shares) that contains a slice of cumulated shares/bonds/commodities/foreign currencies that is sliced into different shares.
(3) The main objective of Bharat 22 is to mobilise funds through the selling of the ETF and thus to meet the disinvestment targets.
Source
The Hindu.