Central Public Sector Enterprises (CPSE) ETF, which tracks the Nifty CPSE Index, is a concentrated portfolio of 10 stocks, whose main aim is to help the Government of India (GOI) in disinvesting its stake in a few CPSEs via the ETF route. There is an upfront discount of 5 per cent on the Further Fund Offer (FFO) Reference Market Price to the stocks included in the index. Oil & Natural Gas Corporation, Coal India and Indian Oil Corporation. As far as the sectoral composition goes, around 57.25 per cent of the concentration is into energy which comprises of stocks like Oil & Natural Gas Corporation, Indian Oil Corporation, GAIL (India) and Oil India. The other big positive point for investing into this ETF is the attractive valuations vis-a-vis the other major indices.

Source: Economic Times January 18, 2017 06:20 UTC