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.
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Published on: Nov 20, 2017