3 Awesome Facts About Bharat 22 ETF For Long Term Investment

By | June 19, 2018

Do you want to make a portfolio of blue chips companies? We all know that fundamentally good companies are a safe bet and they give you good return as well. Then what is actually stopping you to invest on those counters? Well, you need large capital to invest in them to see some good profits. In addition, you also need to track them continuously. However, you can also do future trading on Nifty or Sensex indexes. Although future trading is very risky and so instead of that, you can invest in ETF. Bharat 22 ETF is one of the hottest ETF currently going on. You can also invest in GoldBees, NiftyBees, or any other ETF.

Read Also: Newbie Online Trading Guide In Indian Stock Markets

ETF – Exchange Traded Funds



ETF or Exchange Traded Funds are one kind of index funds that are listed on a stock exchange and you can trade on it just like stocks. It is basically a composition of stocks of a particular index like S&P CNX Nifty, Sensex, or any other index.

It lets you get the exposure on the stock market on a real-time basis. Suppose you want to purchase Gold in the commodity market and one lot of Gold cost you lot and risk is always there. Instead of that, investment in Gold ETF “GoldBees” only cost you around 2650 per unit. If the price of Gold increases in the International markets, then “GoldBees” rate will also appreciate as the underlying asset is Gold.

Likewise, there are many ETFs available for you to invest. NiftyBees ETF is one of them and the underlying asset is “Nifty 50”. Bharat 22 ETF will be listing soon in Indian stock markets and investors have positive sentiments on it as well.

Types of ETFs Scheme

Although there are many ETFs you can invest and so the ETFs are classified into four broad categories. Presently, Equity, Gold, Debt, and World Indices are available.

Equity ETFs

Equity ETFs are traded on cash market just like any other stock. Furthermore, because of its structure and mechanism, it has lower expense ratios. So, you can say it is much better than mutual funds because of its complete transparency on the composition of stocks.

 

Issuer Name Name Symbol Underlying
Edelweiss AMC Edelweiss Exchange Traded Scheme – Nifty NIFTYEES Nifty 50 Index
Goldman Sachs Asset Management GS Nifty BeES NIFTYBEES Nifty 50 Index
ICICI Prudential AMC ICICI Prudential Nifty ETF INIFTY Nifty 50 Index
Kotak AMC Kotak Nifty ETF KOTAKNIFTY Nifty 50 Index
Motilal Oswal AMC MOSt Shares M50 M50 Nifty 50 Index
Quantum AMC Quantum Index Fund – Growth QNIFTY Nifty 50 Index
Reliance AMC R*Shares Nifty ETF RELNIFTY Nifty 50 Index
Religare AMC Religare Invesco Nifty ETF RELGRNIFTY Nifty 50 Index
SBI AMC SBI ETF Nifty SETFNIFTY Nifty 50 Index
UTI AMC UTI Nifty ETF UTINIFTETF Nifty 50 Index
Birla Sun Life AMC Birla Sun Life Nifty ETF BSLNIFTY Nifty 50  Index
Other Equity ETFs
ICICI Prudential AMC ICICI Prudential CNX 100 ETF ICNX100 Nifty 100
Reliance AMC R*Shares CNX 100 ETF RELCNX100 Nifty 100
Goldman Sachs Asset Management GS Bank BeES BANKBEES Nifty Bank
Kotak AMC Kotak Banking ETF KOTAKBKETF Nifty Bank
Reliance AMC R*Shares Banking ETF RELBANK Nifty Bank
SBI AMC SBI ETF Banking SETFBANK Nifty Bank
Goldman Sachs Asset Management CPSE ETF CPSEETF Nifty CPSE Index
Reliance AMC R*Shares Dividend Opportunities ETF RELDIVOPP Nifty Dividend Opportunities 50
Reliance AMC R*Shares Consumption ETF RELCONS Nifty India Consumption
Goldman Sachs Asset Management GS Infra BeES INFRABEES Nifty Infrastructure
Motilal Oswal AMC MOSt Shares M100 M100 Nifty Midcap 100
Goldman Sachs Asset Management GS Junior BeES JUNIORBEES Nifty Next 50
SBI AMC SBI ETF Nifty Junior SETFNIFJR Nifty Next 50
Goldman Sachs Asset Management GS PSU Bank BeES PSUBNKBEES Nifty PSU BANK
Kotak AMC Kotak PSU Bank ETF KOTAKPSUBK Nifty PSU BANK
Goldman Sachs Asset Management GS Shariah BeES SHARIABEES Nifty50 Shariah Index
Reliance AMC R*Shares NV20 ETF RELNV20 Nifty50 Value 20 Index
ICICI Prudential AMC ICICI SENSEX Prudential Exchange Traded Fund ISENSEX S&P BSE Sensex
UTI AMC UTI Sensex ETF UTISENSETF S&P BSE Sensex

Gold ETFs

Gold ETFs are one of the best investment and provides you easy option to invest in golds. It is also traded on the stock market like any other stocks. Gold ETFs are based on International gold prices and also provides you complete transparency. Furthermore, it also lowers your expenses as compared to investment in physical gold and also provides you highest purity.

 

Issuer Name Symbol Underlying
Axis Mutual Fund Axis Gold ETF AXISGOLD Gold
Birla Sun Life Mutual Fund Birla Sun Life Gold ETF BSLGOLDETF Gold
Canara Robeco MF Canara Robeco Gold ETF CANGOLD Gold
Goldman Sachs Asset Management Goldman Sachs Gold Exchange Traded Scheme GOLDBEES Gold
HDFC Mutual Fund HDFC Gold Exchange Traded Fund HDFCMFGETF Gold
ICICI Prudential Mutual Fund ICICI Prudential Gold Exchange Traded Fund IPGETF Gold
IDBI AMC IDBI Gold ETF IDBIGOLD Gold
Kotak Mutual Fund Kotak Gold Exchange Traded Fund KOTAKGOLD Gold
Quantum Mutual Fund Quantum Gold Fund (an ETF) QGOLDHALF Gold
Reliance Mutual Fund Reliance Gold Exchange Traded Fund RELGOLD Gold
Religare Mutual Fund Religare Gold Exchange Traded Fund RELIGAREGO Gold
SBI Mutual Fund SBI Gold Exchange Traded Scheme SBIGETS Gold
UTI Mutual Fund UTI GOLD Exchange Traded Fund GOLDSHARE Gold

Debt ETFs

By investing in Debt ETF, you will get the exposure on various fixed income assets. It lets you get the benefits of both stock market and debt instruments.

 

Issuer Name Symbol Underlying
LIC Nomura AMC LIC Nomura MF G-Sec Long Term ETF – Reg – Growth LICNMFET Nifty 8-13 yr G-Sec Index
Goldman Sachs Asset Management GS Liquid Exchange Traded Scheme LIQUIDBEES Government Securities

World Indices ETFs

World Indices ETFs allows you to invest in international stock markets. You can trade them like stocks and can be bought and easily sold at market prices. Currently, HNGSNGBees and N100 are traded on Indian stock markets and the underlying asset is HangSeng and Nasdaq 100.

 

Issuer Name Symbol Underlying
Goldman Sachs Asset Management

GS Hang Seng BeES

HNGSNGBEES

HangSeng
Motilal Oswal AMC MOSt Shares NASDAQ 100 N100 Nasdaq 100

 

I hope you are now aware of ETF and so let’s check out 3 awesome facts about Bharat 22 ETF for long-term investment.

1. Bharat 22 ETF

Bharat 22 ETF has been launched by ICICI Prudential AMC and is an open-ended exchange traded fund having 22 blue chip companies. It is an integral part of Government of India’s Rs 72,500 crore disinvestment program. GoIs goal is to raise Rs. 8,000 crore from Bharat 22 ETF.

2. Taxation on Bharat 22 ETF

You need to pay a short-term capital gain tax of 15% plus other admissible charges if you hold it up to 1 year. If you hold in your Demat account for more than one year, then you don’t have to pay the long-term capital gain tax.

3. Composition of Bharat 22 ETF

It comprises of a diversified portfolio of six sectors and includes Basic Materials, Energy, FMCG, Finance, Industrials, and Utilities.

Energy sector comprises of four PSU giants like ONGC (5.54%), Coal India (3.72%), IOC (5%), BPCL (4.54).

The finance sector has six companies and includes SBI (7.25%), Axis Bank (7.82%), Bank of Baroda (1.22%), REC (1.18%), PFC (0.99%), and Indian Bank (0.21%).

ITC and National Aluminium are the only company from FMCG sector and Basic Materials sector respectively that got the place in Bharat 22 ETF.

Industrials sectors comprise of four heavy engineering providers. It includes L&T (16.92%), Bharat Electronics (3.48%), EIL (1.44%), and NBCC (0.68%).

Last one is the Utilities sector and its composition are PowerGrid (7.73%), NTPC (7.07), Gail (4.25%), NHPC (1.08%), NLC India (0.27%), and SJVN (0.23%)

I suggest you invest in Bharat 22 ETF for a longer period of at least 5 or more years. So, this is all about ETFs and if you like this post, then do share it with your friends and colleagues on your social networks. Share this post on Facebook, Twitter, Google+, or any other social networks.

If you want to know more about it or want to express your views, then comments below.

Published on: Nov 20, 2017

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