Let us tell you that through its earlier ETF, the government has raised Rs 50 thousand crore. 3 thousand crores in the first tranche introduced in March 2014, Rs 6 thousand crores in January 2017, Rs 2,500 crores in March 2017, 17 thousand crores in November 2018, 10 thousand crores in March 2019 and a total of 11,500 in July 2019 Crores were raised.
How much did the old CPSE ETF returnThe CPSE ETF has fallen by 6.53 per cent in the last one year while the BSE Sensex has given a return of 13.72 per cent during this period. Experts say that the fundamentals of investing in a safe PSU with low valuation and high dividend yield are still strong, but investors' experience with previous CPSE ETFs is not good.
In terms of valuation, the Nifty CPSE index is trading at 8.76 P / E while P / E of Nifty 50 is running at 28. Apart from this, the dividend yield of Nifty CPSE is 5.32 percent. At the same time, the dividend yield of Nifty 50 is running 1.24 percent.
Minimum investment of 5 thousand rupees
(1) Small investors can invest up to 5 thousand rupees. At the same time, this limit is Rs 2 lakh for non-institutional investors and qualified founder buyers. The minimum investment limit for Anchor Investors is Rs 10 crore.
(2) Every CPSE trunk comes with a discount, which is around 3-5 per cent for retail investors. Currently, investors will get a discount of 3 percent for this seventh tranche.
(3) The CPSE ETF consists of 12 public sector companies, most of which are energy and power sector companies.
(4) Their compound annual growth rates in the past one, three and five years till January 23 have been -6.36 per cent, -6.35 per cent and -2.59 per cent respectively. Companies like ONGC, NTPC, Coal India, Indian Oil, REC, PFC, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN. These companies have a weightage of up to 20 percent in the index.